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QUASI-PUBLIC  CORPORATION 
ACCOUNTING 


AND 


MANAGEMENT. 


BY 
JOHN  F.  J.  MULHALL,  P.A. 


FIRST  EDITION. 


CORPORATION  PUBLISHING  CO., 

P.  O.  Box  2428, 
BOSTON,  MASS. 


COPYRIGHTED 
1904-1905. 


PREFACE. 

THE  evolution  of  business  into  corporate  form  necessitated  a  corresponding 
change  in  the  methods  of  accounting  and  management,  especially  so  for  the 
quasi-public  corporation,  whose  principal  and  auxiliary  books  are  radically 
different  from  those  of  the  ordinary  business  corporation. 

The  scarcity  of  material  data  bearing  upon  Quasi-Public  Corporation 
Accounting  and  Management  suggested  to  the  writer  that  a  book  of  this 
character  would  be  of  interest  not  alone  to  those  engaged  either  in  an  admin- 
istrative or  executive  capacity  in  the  respective  corporations  referred  to 
herein,  but  especially  so  to  the  accountant  whose  duty  it  is  to  arrange  special 
forms  and  books  of  account  for  his  particular  line  of  business. 

It  is  the  intention  of  the  writer  to  state  briefly  the  books,  forms,  and 
methods  necessary  for  the  proper  organization  and  management  of  the 
business  and  the  recording  of  all  the  essential  details  of  Revenue,  Operation, 
Maintenance,  and  Construction,  with  the  least  possible  expenditure  of  time 
and  labor  consistent  with  good  management  and  explicit  statements  as  to 
Profit  and  Loss  and  Assets  and  Liabilities. 

The  author  desires  to  express  thanks  to  Mr.  William  Wheeler,  for  his 
review  of  the  part  on  Water  Works  and  for  the  use  of  some  of  his  forms ; 
to  Mr.  Albert  F.  Davol,  for  his  review  of  the  part  on  Telephone  Companies ; 
to  Mr.  William  F.  Goepper,  for  his  review  of  the  part  on  Electric  Light  Works ; 
and  to  Mr.  James  H.  Xeal,  for  his  valuable  suggestions  on  Electric  Railway 
accounting  and  his  general  review  of  the  entire  work. 


240730 


CONTENTS. 


PART  I.     ORGANIZATION.  PAGE 

General  Prerequisites 7 

Record  Books 8 

PART  II.     SECURITIES. 

Capital  Stock 9 

Bonds 12 

PART  III.     WATER  WORKS. 

Application  Book 28 

Service  Card 28 

Plumber's  Card 29 

Water,  Tap,  and  Service  Pipe  Bills 30 

Collector's  Report 33 

Treasurer's  Statement 34 

Controlling  Method 35 

House-to-House  Inspection  and  Meter  Books 35 

On  and  Off  Book. 39 

Customer's  Registers 163 

Cash  Book,  Journal,  and  Ledger 41 

Accounts  Payable,  Vouchers  Payable,  or  Distribution  Book 49 

Voucher,  Check,  and  Distribution 51 

Classification  of  Revenue,  Operation  and  Maintenance,  Fixed  Charges 

and  Construction 53 

Cash  Book  (Controlling  Method) 57 

Auxiliary  Books .  58 

(A )  Construction  Record  Book 58 

(B)  Gate  Book 61 

(C)  Pumping  Station  Record  Book 62 

(D)  Filter  Record  Book 62 

(#)  Meter  Test  and  Meter  Repair  Books 62 

(F)  Details  of  Headings 63 

(A-l)  Construction  Record  Book 63 

(B-l)  Equipment  Book,  Pumping  Station 63 

(C-l)  Real  Estate  Book 64 

(D-l)  Miscellaneous  Construction  Book 64 

PART  IV.     GAS  WTORKS. 

Application  Book,  Service  Card,  Collector's  Report,  Treasurer's  State- 
ment, Meter  Book,  On  and  Off  Book,  Gasfitter's  Cards,  Bills,  66 

Customer's  Registers 163 

Cash  Book,  Journal,  and  Ledger 66 


4  Contents. 

PAGE 

Classification  of  Revenue,  Operation  and  Maintenance,  Manufacturing, 

Fixed  Charges,  and  Construction 69 

Auxiliary  Books 73 

(A)  Construction  Record  Book 73 

(B)  Equipment  Book,  Manufacturing  Plant 73 

(C)  Real  Estate  Book 74 

(D)  Valve  or  Gate  Book .' 74 

(E)  Meter  Test  and  Meter  Repair  Books 74 

(F}  Manufacturing  Book 75 

Form  of  Report  Required  by  Gas  and  Electric  Light  Commissioners  of 

Massachusetts 76 

Extracts  from  Massachusetts  Law,  Pertaining  to  Gas  and  Electric 

Light  Plants 115 

PART  V.     ELECTRIC  LIGHT  WORKS. 

Application  Book,  Electrician's  Card,  Collector's  Report,  Treasurer's 

Statement,  Bills,  Meter  Book,  and  On  and  Off  Book 116 

Customer's  Registers 163 

Cash  Book,  Journal,  and  Ledger 117 

Classification  of  Revenue,  Operation  and  Maintenance,  Fixed  Charges 

and  Construction 119 

Auxiliary  Books 122 

(^4.)  Construction  Record  Book 122 

(B)  Equipment  Book,  Power  Station 123 

(C)  Station  Record 124 

(D)  Real  Estate  Book 124 

Form  of  Report  Required  by  Gas  and  Electric  Light  Commissioners  of 

Massachusetts 76 

Extracts  from  Massachusetts  Law    Pertaining  to  Gas  and  Electric 

Light  Plants 115 

PART  VI.     STEAM  HEATING  WORKS. 

Application  Book,  Service  Card,  Collector's  Report,  Treasurer's  State- 
ment, On  and  Off  Book,  Steamfitter's  Card,  Bills 125 

Customer's  Registers 163 

Cash  Book,  Journal,  and  Ledger. 125 

Classification  of  Revenue,  Operation  and  Maintenance,  Fixed  Charges 

and  Construction , 127 

Auxiliary  Books 129 

(A)  Construction  Record  Book 129 

(£)  Gate  Book 129 

(C)  Station  Equipment  Book 129 

(D)  Real  Estate  Book 129 

PART  VII.     TELEPHONE  COMPANIES. 

Limited  and  Unlimited  Service 130 

Electrician's  Card 130 

Operator's  Sheets 130 


Contents.  5 

PAGE 

Billing  and  Collections 131 

In  and  Out  Book 133 

Customer's  Registers 163 

Cash  Book,  Journal,  and  Ledger 134 

Classification  of  Revenue,  Operation  and  Maintenance,  Fixed  Charges 

and  Construction 135 

Auxiliary  Books 138 

(A)  Construction  Record  Book 138 

(5)  Equipment  Book,  PowerStation 140 

(C)  Real  Estate  Book 141 


PART  VIII.     ELECTRIC  RAILWAYS. 

General 142 

Conductor's  Reports 142 

Inter-urban  Street  Railways 142 

Freight  and  Express 143 

Payrolls , 144 

Paymaster 144 

Supplies 144 

Cash  Book,  Journal,  and  Ledger 144 

Classification  of  Revenue,  Operation  and  Maintenance,  Fixed  Charges 

and  Construction 148 

Auxiliary  Books 158 

(.4)  Construction  Record  Book 158 

(5)  Equipment  Book,  Rolling  Stock 159 

(C)  Equipment  Book,  Power  Station 160 

(Z>)  Water-Power  Plant,  Construction  Book 161 

(E)  Real  Estate  Book 161 

(F)  Operation  Book,  Power  Station 162 


PART  IX.     COMBINED  INSPECTION  AND  CUSTOMER'S  REGISTERS. 

Customer's   Registers,   running  five  years  or  more,  for  Water,   Gas, 

Electric  Light,  Steam  Heat  and  Telephone  Companies 163 

Loose-Leaf  Registers 168 

Card  Registers 170 

PART  X.     PURCHASING  DEPARTMENT. 

Purchasing  Agent 171 

Invoices 173 

Department  Orders 174 

PART  XI.     SALES  DEPARTMENT. 

Solicitors 175 

Credits,  Collections,  and  Claims 175 

Complaints 176 

Fixtures 176 


6  Contents. 

PAGE 

PART  XII.     ENGINEERING  DEPARTMENT. 

Plans 177 

Metal  Plan  Case 177 

Extensions  and  Additions  of  the  System 177 

PART  XIII.     CHEMICAL  AND  TESTING  DEPARTMENT. 178 

PART  XIV.     AUDITS  AND  EXAMINATIONS 179 

PART  XV.     DEPRECIATION. 

Maximum  Life 181 

Mean  Life 182 

Minimum  Life 182 

PART  XVI.     FUNDS  AND  DIVIDENDS 184 

PART  XVII.     ANNUITY,  COMPOUND  INTEREST,  AND  SINKING  FUND  TABLES, 

185-189 

PART  XVIII.     MISCELLANEOUS  ACCOUNT  FORMS 190 

PART  XIX.     MISCELLANEOUS  INSTRUMENT  FORMS 195 

PART  XX.     OFFICE  DEVICES.  .  199 


PART  I. 

ORGANIZATION. 


QUASI-PUBLIC  corporations  may  now  be  formed  under  the 
general  laws  of  each  state,  but  hi  the  past,  as  a  rule,  they  were 
organized  under  special  charters. 

GENERAL  PREREQUISITES. 

Generally  three,  but  sometimes  five  or  more  persons  may  asso- 
ciate themselves  together  by  written  Articles  of  Agreement  for  the 
purpose  of  forming  a  corporation,  the  number  of  persons  necessary 
depending  on  the  laws  of  the  state  under  which  they  intend  to 
incorporate. 

Their  first  meeting  shall  be  called  by  one  or  more  of  the  signers 
of  said  articles,  by  giving  notice  thereof,  stating  the  place,  time, 
and  object  of  the  meeting  to  each  signer,  in  writing  or  by  publi- 
cation hi  some  newspaper  in  the  county  fourteen  days  prior  to 
the  day  of  the  meeting.  If  they  all  sign  waiver  of  notice  of  such 
meeting,  no  notice  or  publication  is  necessary  therefor. 

At  said  meeting  they  may  organize  into  a  corporation,  adopt 
a  corporate  name,  define  the  purposes  of  the  corporation,  fix  the 
amount  of  the  capital  stock,  divide  it  into  shares,  and  elect  a 
president,  board  of  directors,  secretary,  and  any  other  necessary 
officers,  and  may  adopt  a  code  of  By-Laws. 

Before  commencing  actual  business,  the  president,  treasurer, 
and  a  majority  of  the  board  of  directors  prepare  a  certificate 
on  a  form  generally  prescribed  by  the  state  under  which  they 
incorporate,  setting  forth  the  purposes  of  the  corporation,  the 
amount  of  the  capital  stock,  the  amount  already  paid  in,  the  kind 
and  par  value  of  the  shares,  the  names  and  residences  of  the 
owners,  etc.,  sign,  and  make  oath  thereto,  and  file  same  with  fee 
therefor  with  the  proper  state  official,  who  later  furnishes  them 
with  a  certificate  of  their  incorporation. 

The  above  conditions,  or  others  of  a  similar  character,  are  the 
methods  prescribed  by  the  different  states  for  incorporations. 

It  is  always  advisable,  however,  in  matters  of  incorporation 
to  secure  the  best  legal  advice. 


8  Corporation  Accounting  and  Management. 

RECORD  BOOKS. 

All  corporations  of  whatever  character  are  required  by  law  to 
keep  what  are  termed  minute  or  record  books,  wherein  are  re- 
corded the  Act  of  Incorporation,  By-Laws,  etc.,  and  minutes  of 
the  meetings  of  the  stockholders'  and  directors'  meetings. 

For  a  small  company  one  book  will  be  sufficient,  allotting  the 
first  half  to  the  records  of  the  stockholders'  meetings  and  the  last 
half  to  those  of  the  directors'  meetings.  For  a  large  company  it 
would  be  advisable  to  have  separate  books  for  stockholders'  and 
directors'  meetings. 

They  are  also  required  to  have  a  stock  certificate  book,  stock 
ledger,  and  seal. 


PART  II. 

SECURITIES. 


CAPITAL  STOCK. 

Certificates  of  Stock  in  a  corporation  represent  to  the  party  in 
whose  name  it  is  issued  part  ownership  in  the  corporation  issuing 
same.  The  amount  of  issue,  kind  and  par  value  of  same,  whether 
it  be  $25,  $50,  or  $100,  or  any  other  figure,  is  fixed  at  the  time  of 
its  issue  by  the  vote  of  the  corporation;  and  at  times  by  the  general 
laws  of  the  state. 

When  there  is  only  one  class  of  stock,  it  is  considered  as  Common 
Stock;  if  more  than  one  class,  it  is  divided  into  Common  and 
Preferred  Stocks.  There  may  be  still  further  divisions  of  the 
Preferred  Stock  into  First  Preferred,  Second  Preferred,  etc. 


(Stub) 


No.  688. 


Issued  to 


.  shares 


190 


Received   the    above 
described   certificate. 

No.  . 


Old  Certificate 
No.  . 


(Form  100) 

(Form  of  Common  Stock  Certificate.) 
AUTHORIZED  CAPITAL  STOCK,  $2,250,000. 
10,000  shares  Preferred.         12,500  shares  Common. 
No.  Shares. 

688. 

CONSUMERS'  WATER  COMPANY 
of  Boston,  Mass. 

This  is  to  certify  that  

is  entitled  to shares,  of  one  hundred 

dollars  each,  of  the  Consumers'  Water  Company 
Common  Stock,  transferable  only  on  the  books  of 
said  company,  in  person  or  by  attorney,  on  the 
surrender  of  this  certificate. 

IN  WITNESS  WHEREOF,  said  company  has  caused 
this  certificate  to  be  signed  and  sealed  by  its  Presi- 
dent and  Treasurer,  this  day  of 

.,  A.D.  190  . 


Treasurer. 


President. 


10 


Corporation  Accounting  and  Management. 


(Stub) 


No.  58. 


Issued  to 


shares. 


190 


Received  the  above 
mentioned  certificate 
No.  . 


Old  Certificate 
No.. 


(Form  101) 

(Form  of  Preferred  Stock.) 
AUTHORIZED  CAPITAL  STOCK,  $2,250,000. 
10,000  shares  Preferred.         12,500  shares  Common. 
No. 

58.  Shares. 

CONSUMERS'  WATER  COMPANY 

of  Boston,  Mass. 

This  is  to  certify  that 

is  entitled  to shares,  of  one  hundred 

dollars  each,  of  the  Preferred  Capital  Stock  of  the 
Consumers'  Water  Company,  transferable  only  on 
the  books  of  said  company  in  person  or  by  attorney 
on  the  surrender  of  this  certificate. 

The  holder  of  this  Preferred  Stock  shall,  from  and 
after  November  1,  1905,  be  entitled  to  receive  from 
the  net  earnings  of  the  company,  cumulative  divi- 
dends of  six  (6)  per  centum  per  annum,  and  to  have 
such  dividends  with  all  arrearages,  if  any,  paid  in 
full  before  any  dividends  shall  be  paid  upon  the 
Common  Stock;  and  whenever  the  net  earnings  of 
the  corporation  shall  exceed  the  sum  required  to 
pay  a  dividend  of  six  per  centum  per  annum  on 
both  the  Preferred  and  Common  Stock  outstanding, 
the  surplus  shall  be  payable  in  dividends  pro  rata 
to  the  holders  of  the  Preferred  and  Common  Stocks. 

IN  WITNESS  WHEREOF,  said  company  has  caused 
this  certificate  to  be  signed  and  sealed  by  its  Presi- 
dent and  Treasurer,  this day  of 

.,  A.  D.  190  . 


Treasurer. 

President. 
(Form  102) 

(Indorsement  in  blank.  '  Form  of  Power  of  Attorney.) 

FOR  VALUE  RECEIVED,   I    

hereby  sell,  assign,  and  transfer  to 

shares   of   the   stock   mentioned   in   this   certificate, 

and  do  hereby  appoint    

Attorney, 

to  transfer  same  on  the  books  of  the  company,  with  full  power  of  substitution. 

Dated 

WITNESS  :    

Signature) .' 


Securities. 


11 


6 

CERTIFICATE 
ISSUED 

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i 

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(Form  of  Stock  Ledger.) 

(Name  of  Holder) 
Dr. 

S 

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K 

2 

CERTIFICATE 
SURRENDERED 

9 

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8 

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t- 

2 

K 

2 

12  Corporation  Accounting  and  Management, 

The  above  forms  of  both  Common  and  Preferred  Stocks 
are  specimens  of  the  many  numerous  forms  used,  they  being 
made  to  conform  with  votes  of  the  stockholders  when  same 
are  issued. 

All  classes  of  stock  have  some  form  of  power  of  attorney  printed 
on  the  back,  so  as  to  expedite  transactions  therein. 

The  seal  of  a  corporation  is  usually  a  die,  operated  by  hand, 
having  printed  thereon  the  name  of  the  corporation  and  year  of 
its  incorporation. 

BONDS. 

Mortgage  bonds  are  liens  on  the  property  of  the  corporation, 
being  promises  to  pay  certain  specified  amounts  at  the  end  of 
fixed  periods,  with  interest  thereon  at  stated  intervals  at  a  speci- 
fied rate,  and  are  secured  by  a  mortgage  deed  of  trust  on  a  part 
or  the  whole  of  a  corporation's  property,  the  terms  of  the  mortgage 
being  set  forth  in  detail  in  the  deed  of  trust. 

A  corporation  may  issue  mortgage  bonds,  such  as  firsts,  sec- 
onds,—  sometimes  called  first  mortgage  consolidated  bonds,— 
thirds,  etc.,  but  seldom  issues  over  three  mortgages  on  account  of 
the  enormous  discount  at  which  they  would  have  to  be  sold. 

Serial  bonds  differ  from  other  mortgage  bonds  in  the  date  of 
maturity,  certain  portions  of  the  issue  maturing  at  fixed  intervals. 

Registered  bonds  are  entered  on  the  books  of  a  company  to 
the  credit  of  the  owner  and  are  transferable  only  on  proper 
indorsement  by  him. 

Collateral  trust  bonds  are  secured  by  the  deposit  of  either 
stocks  or  bonds,  or  both,  for  the  benefit  of  the  holders  of  said 
•collateral  bonds. 

Debenture  bonds  are  promises  to  pay,  without  security,  and 
are  in  effect  notes  of  the  corporation,  their  value  depending  on 
the  ability  of  the  corporation  to  pay,  or  the  credit  of  the  corpora- 
tion issuing  them. 

Income  bonds  are  promises  to  pay  certain  specified  amounts  at 
the  end  of  fixed  periods,  with  interest  thereon  at  stated  intervals 
out  of  the  income  of  the  corporation.  The  interest  payments  are 
not  obligatory  on  the  corporation  unless  the  actual  earnings  of 
the  corporation  equal  or  exceed  the  amount  necessary  to  meet 


Securities.  13 

the  interest  on  said  issue  after  payment  of  all  operating  expenses 
and  fixed  charges. 

Quasi-public  corporations,  such  as  water  works,  gas  works, 
electric  light  works,  steam  heating  works,  telephone  companies, 
and  electric  railways,  generally  issue  only  what  are  termed  mort- 
gage bonds,  which  are  usually  in  the  denomination  of  either  $500  or 
$1,000,  or  both;  while  steam  railways,  owing  to  their  extensive 
properties,  and  constant  additions  and  consolidations  through 
purchase  and  by  lease,  not  only  issue  all  kinds  of  mortgage  bonds, 
but  other  classes  of  securities.  Occasionally,  some  of  the  other 
corporations  do  likewise. 

(Form  103) 

(Form  First  Mortgage  $1,000  Bond.) 

STATE  OF  MASSACHUSETTS. 

$1,000.  No 

CONSUMERS'  WATER  COMPANY. 

FIVE  PER  CENT 

FIRST    MORTGAGE    SINKING    FUND   BOND,    ONE     THOUSAND    DOLLARS. 

($1,000.) 

THE  CONSUMERS'  WATER  COMPANY,  a  corporation  duly  created  and 
organized  under  the  laws  of  the  state  of  Massachusetts,  is  indebted  to  the 
American  Trust  Company,  of  Boston,  in  the  Commonwealth  of  Massachu- 
setts, or  bearer,  in  the  sum  of  ONE  THOUSAND  DOLLARS,  which  sum  it 
promises  to  pay  to  the  bearer  hereof,  on  the  first  day  of  October,  1925, 
with  interest  from  the  first  day  of  October,  1905,  at  the  rate  of  five  per  cent 
per  annum,  payable  semi-annually  on  the  first  day  of  April  and  October  in 
each  year,  on  presentation  and  surrender  of  the  proper  interest  coupon 
hereto  annexed,  at  the  American  Trust  Company,  in  Boston. 

This  bond  is  one  of  a  series  numbered  from  one  to  two  hundred,  inclusive, 
the  issue  of  which  is  limited  to  two  hundred  thousand  dollars,  being  all 
of  the  denomination  of  one  thousand  dollars,  all  of  said  bonds  being  secured 
by  a  trust  mortgage  to  the  American  Trust  Company  on  all  the  lands, 
income,  revenues,  and  other  property  of  every  kind  of  the  Consumers' 
Water  Company,  now  owned,  or  to  be  hereafter  acquired,  and  subject  to 
the  terms  and  conditions  of  said  trust  mortgage. 

The  said  mortgage  provides  that  bonds  numbered  from  one  hundred 
and  fifty-one  to  two  hundred,  both  inclusive,  shall  be  applied  solely  to  the 
payment  for  future  extensions  of  the  works  of  the  said  Consumers'  Water 
Company  and  shall  remain  in  the  custody  of  the  said  trustee  until  said 
extensions,  or  part  thereof,  have  been  made;  and  issued  then  only  upon 


14  Corporation  Accounting  and  Management. 

an  order  on  the  said  trustee  by  the  Board  of  Directors,  accompanied  by 
a  certificate  stating  the  extensions  and  the  amount  thereof. 

For  further  security,  said  mortgage  establishes  by  annual  payment  a 
sinking  fund,  to  provide  for  the  redemption  and  retirement  of  the  principal 
of  said  bonds. 

This  bond  shall  be  valid  only  when  authenticated  by  a  certificate  indorsed 
hereon,  signed  by  the  American  Trust  Company,  trustee. 

IN  WITNESS  WHEREOF,  the  Consumers'  Water  Company  has  <*&used  its 
corporate  seal  to  be  affixed  to  this  bond  and  the  same  to  be  signed  by  its 
President  and  Treasurer,  this  day  of  1905. 

.  President. 


.  Treasurer. 


(Indorsement  of  Trust  Company.) 

This  is  to  certify  that  this  bond  is  one  of  the  series  referred  to  within, 
and  is  entitled  to  the  benefits  of  the  trust  mortgage  to  this  company  and 
of  the  sinking  fund  to  be  paid  to  it. 

AMERICAN  TRUST  COMPANY,  Trustee, 
By 
Treasurer. 

(Form  104) 

(Form  of  Coupon.) 

On  the  first  day  of  April,  1906,  the  CONSUMERS'  WATER  COMPANY  will 
pay  to  the  bearer  at  the  AMERICAN  TRUST  COMPANY  in  Boston,  Twenty-five 
Dollars,  being  six  months'  interest  on  its  First  Mortgage  Sinking  Fund 
Bond  No 

Treasurer. 

The  number  of  the  bond  is  generally  printed  on  the  face  of  the 
coupon. 

The  form  of  mortgage  given  to  secure  an  issue  of  bonds  varies 
in  accordance  with  the  necessities,  conditions,  and  desires  of  the 
company  issuing  same  and  the  demand  for  same  in  the  bond 
market. 

Some  companies  not  only  create  a  lien  on  their  present  fixed 
assets,  such  as  real  estate,  appurtenances,  machinery,  etc.,  but 
also  include  therein  lien  on  all  additions  to  and  extensions  of 
the  plant  during  the  life  of  the  bond;  and  on  certain  portions  of 
the  income  in  excess  of  the  interest  moneys  maturing  on  bond 


Securities.  15 

issue,  so  that  a  part  or  the  whole  of  the  issue  will  be  retired  at  the 
maturity  of  the  trusteeship. 

One  of  the  many  forms  of  mortgage  is  as  follows: 

(Form  105) 

(Form  of  Mortgage  on  Property  given  by  Company  to  Trust  Company 
to  secure  issue  of  Bonds,  including  therein  Form  of  Bond.) 

THIS  INDENTURE,  made  and  entered  into  the  first  day  of  September 
in  the  year  one  thousand  eight  hundred  and  eighty-five,  by  and  between 

THE WATER  COMPANY,  of ,  a  corporation 

duly  organized  and  existing  under  the  laws  of  the  state  of , 

of  the  first  part,  and  The Trust  Company,  trustee,  a  corpo- 
ration duly  organized  under  the  laws  of  the  state  of ,  of  the 

second  part. 

WITNESSETH,  That  whereas  the  party  of  the  first  part  is  authorized  and 

empowered  under  the  laws  of  the  state  of   to  supply  with 

water  for  public  and  private  purposes  the  city  of    hi  the 

county  of   and  state  of   ,  and  the  inhabitants 

thereof,  by  water  works,  under  a  grant  to  it  by  the  provisions  of  an  ordinance 

of  the  mayor  and  common  council  of  the  city  of ,  duly  adopted 

and  approved  on  the  twenty-ninth  day  of  May,  1885,  and  duly  published  on 
the  first  day  of  June,  1885,  entitled:  "  An  ordinance  providing  for  supplying 

the  city  of   and  its  inhabitants  with  water  for  public  and 

private   purposes;    granting   to   The    Water   Company,   of 

the  franchise  and  license  of  constructing  and  operating 

water  works  in  the  city  of  ;   contracting  with  the  said  com- 
pany for  the  rent  of  fire  hydrants  for  supplying  the  city  of  

with  water,  and  giving  the  city  of an  option  to  purchase  the 

said  works,"  and  the  party  of  the  first  part  has  entered  upon  the  construc- 
tion of  the  said  water  works,  and  the  stockholders  of  the  party  of  the  first 

part,  at  a  meeting  duly  called  and  held  at aforesaid,  on  the 

seventh  day  of  August,  1885,  unanimously  adopted  the  following  resolu- 
tions: 


by  The Water   Company,  of , 

in  stockholders'  meeting  duly  assembled: 

"  1.  That  The   Water  Company,  of   , 

for  the  purpose  of  paying  for  its  water  works  and  bettering  and  extending 
the  same,  make  and  issue  its  first  mortgage  coupon  bonds,  to  the  amount  of 
two  hundred  thousand  dollars,  to  wit :  Two  hundred  bonds  of  the  denomi- 
nation of  five  hundred  dollars  each,  and  one  hundred  bonds  of  the  denomi- 
nation of  one  thousand  dollars  each,  the  said  bonds  to  be  dated  the  first 


16  Corporation  Accounting  and  Management. 

day  of  September,  1885,  and  to  mature  thirty  years  thereafter,  bearing 
interest  from  their  date  at  the  rate  of  six  per  centum  per  annum,  payable 
semi-annually  on  the  first  days  of  March  and  September  in  each  year  at 

The  Trust  Company,  in  the  city  of  ,  in  the 

lawful  money  of  the  United  States,  on  the  presentation  and  surrender  of 
corresponding  interest  coupons  attached  to  the  said  bonds;  any  or  all  of 
the  said  bonds  being  redeemable  in  advance  of  their  maturity  on  and  after 
the  first  day  of  September,  1895,  in  such  installments  and  at  such  times 
as  this  company  at  its  option  may  from  time  to  time  elect;  and  further, 

"  2.  Resolved,  That,  to  secure  the  payment  of  the  principal  and  interest 
of  the  said  bonds,  a  first  mortgage  is  hereby  directed  to  be  made  and  executed 

to  The    Trust  Company,  of    ,  in  the  city, 

county,  and  state  of  ,  as  trustee,  upon  the  said  water  works 

of  the  said   Water  Company,  of   ,  in  and 

near  the  city  of ,  together  with  all  its  lands,  machinery, 

pipes,  outfit,  rights,  liberties,  privileges,  and  franchises,  now  held  and  here- 
after to  be  acquired  by  it,  with  all  its  income  and  profits;  and  further. 

"  3.  Resolved,  That,  in  addition  to  the  payment  of  the  interest,  a  sinking 
fund,  to  be  in  charge  of  the  said  trustee,  shall  be  created  and  established 
to  provide  for  the  redemption  and  retirement  of  the  principal  of  the  said 
bonds,  and  that,  beginning  with  the  receipts  of  the  second  day  of  September, 
in  the  year  one  thousand  eight  hundred  and  ninety,  and  continuing  during 
the  existence  of  any  part  of  the  said  mortgage  debt,  ten  per  centum  of  the 
gross  water  rates,  except  the  revenue  from  public  fire  hydrants,  received 

by Water  Company,  of    ,  shall  be  paid 

over  to  the  said  trustee  on  the  first  days  of  March  and  September  in  each 
and  every  year,  to  be  applied  to  the  redemption  and  retirement  of  the 
principal  of  the  said  bonds,  but  in  no  case  at  a  rate  exceeding  ten  per  centum 
premium  and  accrued  interest,  and  such  of  the  said  money  as  the  said  trustee 
shall  not  be  able  to  use  in  purchasing  bonds  at  or  below  ten  per  centum 
premium  and  accrued  interest  to  be  invested  by  it  for  the  purpose  of  earning 
interest  for  the  benefit  of  the  said  sinking  fund;  and  further, 

"  4.  Resolved,  That,  as  further  security  for  the  payment  of  the  said  interest 
coupons,  an  assignment  and  transfer  are  hereby  directed  to  be  made  and 
executed  to  the  said  trustee,  of  all  claims  and  demands  against  the  city 

of   during  the  existence  of  any  part  of  this  mortgage  debt 

for  the  rent  of  fire  hydrants  under  an  ordinance  of  the  mayor  and  common 

council  of  the  city  of ,  adopted  and  approved  May  29,  1885, 

entitled:     '  An  ordinance  providing  for  supplying  the  city  of 

and  its  inhabitants  with  water  for  public  and  private  purposes;   granting 

to    Water  Company,  of    ,  the  franchise 

and  license  of  constructing  and  operating  water  works  in  the  city  of 

;   contracting  with  the  said  company  for  the  rent  of  fire  hydrants 


Securities.  17 

for  supplying  the  city  of with  water,  and  giving  the  city  of 

an  option  to  purchase  the  said  works,  and  under  any  addi- 
tional water  works  ordinances  of  the  said  city  of ,  irrevocably 

constituting  the  said  trustee  and  its  successors  the  agent  of 

Water  Company,  of    . . .,  to  receive  and  receipt  for  all 

sums  of  money  so  accruing  from  the  said  city  of for  the  rent 

of  fire  hydrants  during  the  existence  of  any  part  of  this  mortgage  debt; 
the  said  trustee  to  apply  such  sums  to  the  payment  of  the  said  interest 
coupons  as  they  mature,  returning  to  the  said  company  any  surplus  on 
hand  after  paying  or  providing  for  all  matured  interest  coupons  on  out- 
standing bonds;  and  further, 

"5.  Resolved,  That  the  president  and  secretary  are  authorized  and 
instructed  to  sign,  seal,  deliver,  and  acknowledge  for  record,  in  due  form 
of  law,  the  said  mortgage,  and  to  sign  and  seal  the  said  bonds,  and  the 
treasurer  to  sign  by  the  engraved  facsimile  of  his  signature  the  coupons 
thereof,  and  the  president  to  deliver  the  said  coupon  bonds  so  perfected 
to  the  said  trustee ;  and  further, 

"6.  Resolved,  That  one  hundred  and  fifty  thousand  dollars  in  amount 
of  the  said  bonds  shall  at  once  be  issued  by  the  said  trustee  upon  the  order 
of  the  Board  of  Directors  of  this  company,  the  said  amount  being  needed 
to  pay  for  the  cost  of  the  said  water  works;  but  no  part  of  the  remaining 
fifty  thousand  dollars  of  the  said  bonds  shall  be  issued  except  for  the  pur- 
pose of  paying  for  extensions  or  betterments  hereafter  to  be  made  by  the 
said  company,  and  to  the  amount  necessary  for  such  object,  and  then  only 
upon  an  order  on  the  said  trustee  by  the  Board  of  Directors,  giving  the 
price  of  such  extension  or  betterment,  and  accompanied  by  their  certificate 
to  the  effect  that  such  extension  or  betterment  has  been  made,  and  that 
the  revenue  to  the  said  Water  Company  from  the  said  extension  or  better- 
ment amounts  to  at  least  eight  per  centum  per  annum  upon  the  amount  of 
bonds  so  to  be  issued." 

AND  ix  PURSUANCE  of  the  said  resolutions  there  have  been  prepared  and 
made  ready  for  issue  two  hundred  bonds,  numbered  consecutively  from  one 
to  two  hundred,  both  numbers  inclusive,  all  being  equal  and  alike,  save  as 
to  numbers,  and  of  the  denomination  of  five  hundred  dollars  each,  dated 
September  1,  1885,  and  maturing  September  1,  1915,  with  sixty  coupons 
attached  to  each;  and  the  said  coupons  consecutively  and  correspondingly 
numbered  and  matured,  the  first  maturing  March  1,  1886,  the  sixtieth 
September  1,  1915,  and  the  intermediate  coupons  following  the  first  in 
regular  intervals  of  six  months ;  coupons  and  principal  being  made  payable 

at    Trust  Company,  in  the  city  of    ,  which 

bonds  and  coupons  are  in  form  as  follows: 


18  Corporation  Accounting  and  Management. 

$500.00.  UNITED  STATES   OF  AMERICA.  No. 

STATE  OF  

THE WATER  COMPANY,  OF 

FIRST  MORTGAGE  BOND. 

THE    WATER   COMPANY,    OF ,    a 

corporation  duly  organized  and  existing  under  the  laws  of  the  state  of 

,  f or  value  received  hereby  promises  to  pay  to 

Trust  Company,  or  bearer,  the  sum  of  five  hundred  dollars, 

lawful  money  of  the  United  States  of  America,  on  the  first  day  of  September 
in  the  year  one  thousand  nine  hundred  and  fifteen,  together  with  interest 
on  said  sum,  from  the  date  hereof,  at  the  rate  of  six  per  centum  per  annum, 
lawful  money  of  the  United  States  of  America,  payable  semi-annually  on 

the  first  days  of  March  and  September  in  each  year,  at 

Trust  Company,  in  the  city  of ,  on  presentation  and  surrender 

of  the  coupons  hereto  attached,  as  they  severally  become  due.  This  bond 
is  one  of  a  series  of  two  hundred,  of  five  hundred  dollars  each,  numbered 
consecutively  from  one  to  two  hundred,  both  numbers  inclusive,  and  of  a 
series  of  one  hundred,  of  one  thousand  dollars  each,  numbered  consecu- 
tively from  two  hundred  and  one  to  three  hundred,  both  numbers  inclusive, 
and  amounting  in  the  aggregate  to  two  hundred  thousand  dollars,  all  being 
of  like  date  and  tenor,  except  as  to  amount,  and  all  equally  secured,  to  be 

paid  by  first  mortgage  upon  the  water  works  of  the  said  

Water  Company,  of .in  and  near  the  city  of , 

in  the  state  of ,  together  with  all  its  lands,  machinery,  pipes, 

outfit,  rights,  liberties,  privileges,  and  franchises,  now  held  or  hereafter 
to  be  acquired  by  it,  with  all  its  income  and  profits;  executed  by  it  to 

Trust  Company,  trustee,  bearing  even  date  herewith,  and 

duly  acknowledged  and  recorded  according    to  law,  in  the  office  of  the 

Register  of  Deeds  of  the  County  of ,  in  the  state  of 

This  bond  shall  not  become  obligatory  until  authenticated  by  the  signa- 
ture of  said  trustee  to  the  certificate  hereto  appended ;  and  it  is  redeemable 
in  advance  of  its  maturity,  on  and  after  the  first  day  of  September,  1895, 

at  such  a  time  as  the  said Water  Company,  of , 

at  its  option  may  elect. 

IN  WITNESS    WHEREOF,    the    said Water    Company,    of 

,  has  caused  this  instrument  to  be  sealed  with  its  cor- 
porate seal,  and  to  be  signed  by  its  president  and  secretary,  and  the  coupons 
hereto  attached  to  be  signed  by  the  engraved  facsimile  of  the  signature 

of  its  treasurer,  at   aforesaid,  this  first  day  of   September, 

1885. 

THE WATER  COMPANY,  OF , 

by ' its  President, 

and  by its  Secretary. 


Securities.  19 

This  certifies  that  this  bond  is  one  of  the  bonds  mentioned  in  the  mortgage 
within  referred  to. 

THE    TRUST  COMPANY, 

by its  President. 

[$15.] ,  -      — ,  The Water  Company,  of 

,  will  pay  to  bearer  fifteen  dollars  on  surrender  of  this  coupon  at 

Trust  Company  in  the  city  of ,  for  semi- 
annual interest  on  first  mortgage  bond  No 

Treasurer. 

AND  IN  FURTHER  PURSUANCE  of  the  said  resolutions  there  have  been  also 
prepared  and  made  ready  for  issue  one  hundred  bonds,  numbered  consecu- 
tively from  two  hundred  and  one  to  three  hundred,  both  numbers  inclusive, 
all  being  equal  and  alike  save  as  to  numbers,  and  of  the  denomination  of 
one  thousand  dollars  each,  dated  September  1,  1885,  and  maturing  Sep- 
tember 1,  1915,  with  sixty  coupons  attached  to  each,  and  the  said  coupons 
consecutively  and  correspondingly  numbered  and  matured,  the  first  matur- 
ing March  1,  1886,  the  sixtieth'  September  1,  1915,  and  the  intermediate 
coupons  following  the  first  in  regular  intervals  of  six  months,  coupons  and 

principal   being  made   payable   at    Trust   Company 

in  the  city  of   ,  which  bonds  and  coupons  are  in  form  as 

follows : 

$1,000.00  UNITED  STATES  OF  AMERICA.  No 

STATE  OF  

THE WATER  COMPANY,  OF 

FIRST  MORTGAGE  BOND. 

THE  WATER  COMPANY,  OF  ,  a  cor- 
poration duly  organized  and  existing  under  the  laws  of  the  state  of 

,  f or  value  received,  hereby  promises  to  pay  to 

Trust  Company,  or  bearer,  the  sum  of  one  thousand  dollars,  lawful  money 
of  the  United  States  of  America,  on  the  first  day  of  September,  in  the  year 
one  thousand  nine  hundred  and  fifteen,  together  with  interest  on  said  sum, 
from  the  date  hereof,  at  the  rate  of  six  per  centum  per  annum,  lawful  money 
of  the  United  States  of  America,  payable  semi-annually  on  the  first  days 

of  March  and  September  in  each  year,  at  Trust  Company 

in  the  city  of ,  on  presentation  and  surrender  of  the  coupons 

hereto  attached,  as  they  severally  become  due.  This  bond  is  one  of  a  series 
of  two  hundred,  of  five  hundred  dollars  each,  numbered  consecutively 
from  one  to  two  hundred,  both  numbers  inclusive,  and  of  a  series  of  one 
hundred,  of  one  thousand  dollars  each,  numbered  consecutively  from  two 


20  Corporation  Accounting  and  Management. 

hundred  and  one  to  three  hundred,  both  numbers  inclusive,  and  amounting 
in  the  aggregate  to  two  hundred  thousand  dollars;  all  being  of  like  date 
and  tenor,  except  as  to  amount,  and  all  equally  secured  to  be  paid  by  first 
mortgage  upon  the  water  works  of  the  said Water  Com- 
pany, of  ,  in  and  near  the  city  of  ,  in 

the  state  of   ,  together  with  all  its  lands,  machinery,  pipes, 

outfit,  rights,  liberties,  privileges  and  franchises,  now  held  or  hereafter  to 

be  acquired  by  it,  with  all  its  income  and  profits;  executed  by  it  to 

Trust  Company,  trustee,  bearing  even  date  herewith, 

and  duly  acknowledged  and  recorded  according  to  law,  in  the  office  of  the 

register  of  deeds  of  the  county  of in  the  state  of 

This  bond  shall  not  become  obligatory  until  authenticated  by  the  signa- 
ture of  said  trustee  to  the  certificate  hereto  appended;  and  it  is  redeem- 
able in  advance  of  its  maturity,  on  and  after  the  first  day  of  September, 

1895,  at  such  a  time  as  the  said Water  Company,  of 

,  at  its  option  may  elect. 

IN  WITNESS  WHEREOF,  the  said    Water   Company,  of 

,  has  caused  this  instrument  to  be  sealed  with  its  cor- 
porate seal,  and  to  be  signed  by  its  president  and  secretary,  and  the  coupons 
hereto  attached  to  be  signed  by  the  engraved  facsimile  of  the  signature  of 
its  treasurer  at  aforesaid,  this  first  day  of  September,  1885. 


THE  WATER  COMPANY,  OF  , 

by 

,  its  President, 

and  by 

,   its  Secretary. 

This  certifies  that  this  bond  is  one  of  the  bonds  mentioned  in  the  mortgage 
within  referred  to. 

THE TRUST  COMPANY, 

by 

! ,  its  President. 

[$30.] ,  -       — ,  The WTater  Company,  of 

,  will  pay  to  bearer  thirty  dollars  on  surrender  of  this  coupon  at 

Trust  Company  in  the  city  of    ,  for 

semi-annual  interest  on  first  mortgage  bond  No 

,  Treasurer. 

Now,  THEREFORE,  for  and  in  consideration  of  the  premises,  and  of  the 
sum  of  one  dollar,  cash  in  hand,  paid  to  the  party  of  the  first  part  by  the 
party  of  the  second  part,  before  the  sealing  and  delivery  hereof,  the  receipt 


Securities  21 

whereof  is  hereby  acknowledged,  and  in  order  to  secure  the  payment  of  said 
bonds  and  coupons  according  to  their  tenor,  the  party  of  the  first  part  has 
granted,  bargained  and  sold,  and  does  by  these  presents  mortgage  and 
warrant  to  the  party  of  the  second  part,  as  trustee,  and  its  successors  and 
assigns,  all  rights,  powers,  privileges,  and  franchises  granted  to  or  con- 
ferred upon  the  party  of  the  first  part,  by  the  state  of and 

the  city  of  ,  or  which  may  hereafter  be  so  granted  and  con- 
ferred ;  together  with  the  water  works  of  the  party  of  the  first  part,  in  and 

near  the  city  of   ,  in    county,  in  the  state  of 

,  together  with  all  its  lands,  machinery,  pipes,  outfit,  rights, 

liberties,  privileges,  and  franchises,  now  held  or  hereafter  to  be  acquired 
by  it,  with  all  its  income  and  profits,  including  any  revenues  derived  by 
the  party  of  the  first  part  from  whatsoever  source;  and  all  its  contracts, 
and  all  its  muniments  of  title  to  real  and  personal  estate. 

To  HAVE  AND  TO  HOLD  the  same  to  the  party  of  the  second  part,  its 
successors  and  assigns  forever;  in  trust,  nevertheless,  upon  the  following 
conditions,  and  for  the  following  uses  and  purposes,  to  wit: 

First.  So  long  as  no  default  shall  be  made  in  the  payment  of  the  prin- 
cipal or  the  interest  of  the  said  bonds  according  to  their  tenor  and  effect, 
and  so  long  as  the  conditions  of  this  deed  shall  be  performed,  the  party  of 
the  first  part,  its  successors  or  assigns,  shall  be  permitted  to  retain  the 
possession  and  control  of  the  said  mortgaged  property,  and  of  its  income  and 
profits,  except  as  hereinafter  provided.  But  the  party  of  the  first  part 
agrees  to  pay  all  taxes,  assessments  and  levies  which  shall  from  time  to 
time  be  legally  imposed,  assessed,  or  levied  upon  the  property  and  franchises 
hereby  conveyed  and  attempted  to  be  conveyed,  the  lien  whereof  might 
be  held  superior  to  the  lien  of  these  presents,  so  that  the  priority  of  these 
presents  shall  at  all  times  be  duly  maintained  and  preserved;  and  to  take 
care  of  and  preserve  the  said  property,  and  to  do  on  demand  of  the  party 
of  the  second  part,  its  successors  and  assigns,  all  acts  necessary  or  proper 
to  keep  valid  the  lien  hereby  created  and  intended  to  be  created;  and  at 
any  future  time,  and  as  often  as  it  may  be  necessary,  to  execute  on  demand 
of  the  party  of  the  second  part,  its  successors  or  assigns,  all  such  other 
assurances,  deeds,  mortgages'  and  other  instruments  of  writing  in  due 
form  and  effect,  as  may  be  proper  to  the  better  carrying  out  of  the  true 
intent  and  meaning  of  these  presents;  and  especially,  and  at  its  own  cost, 
to  do  all  things  that  may  reasonably  be  required  by  the  party  of  the  second 
part,  its  successors  and  assigns,  to  keep  valid  the  lien  hereby  intended  to 
be  created  upon  after  acquired  property. 

Secondly.  The  party  of  the  first  part  further  covenants  for  itself,  its 
successors  and  assigns,  to  and  with  the  party  of  the  second  part,  its  suc- 
cessors and  assigns,  that,  in  addition  to  the  payment  of  the  interest,  and 
in  order  to  provide  a  sinking  fund  for  the  payment  and  retirement  of  the 


22  Corporation  Accounting  and  Management. 

principal  of  the  said  bonds,  beginning  with  the  receipts  of  the  party  of  the 
first  part,  of  the  second  day  of  September,  in  the  year  one  thousand  eight 
hundred  and  ninety,  and  continuing  during  the  existence  of  any  of  the  said 
mortgage  debt,  ten  per  centum  of  the  gross  water  rates,  except  the  revenue 

from   public   fire   hydrants,   received   by    Water   Company, 

of  ,  shall  be  paid  over  to  the  said  trustee  on  the  first 

days  of  March  and  September  in  each  and  every  year,  to'  be  applied  to  the 
redemption  and  retirement  of  the  principal  of  the  said  bonds.  The  said 

trustee  shall  use  the  said  fund  in  redeeming  bonds  which  the  said 

Water  Company,  of ,  may  call  for  redemption 

in  advance  of  their  maturity,  and  if  any  surplus  of  sinking  fund  money 
shall  remain  after  exhausting  such  calls,  the  said  trustee  shall  apply  such 
surplus  to  the  redemption  and  retirement  of  the  principal  of  any  other  of 
the  said  first  mortgage  bonds  of  the  party  of  the  first  part,  by  purchase 
of  such  bonds  in  the  open  market,  provided  that  such  purchases  be  made 
at  a  rate  not  exceeding  ten  per  centum  premium  and  accrued  interest. 
And  such  of  the  said  money  as  the  said  trustee  shall  not  be  able  to  use  in 
the  manner  aforesaid  shall  be  invested  by  it  for  the  purpose  of  earning 
interest  for  the  benefit  of  the  said  sinking  fund. 

Thirdly.  In  the  event  that  the  party  of  the  first  part  shall  fail  for  the 
space  of  ninety  days  to  pay  the  semi-annual  interest  as  and  when  the  same 
may  become  due,  on  the  said  bonds,  or  any  of  them,  after  presentation 
and  demand  of  the  payment  of  such  coupons,  or  shall  fail  for  ninety  days 
to  pay  the  said  installments  of  sinking  fund,  as  and  when  the  same  may 
become  due,  or  any  of  them,  after  demand  of  them,  or  any  of  them,  then 
and  in  that  event  the  whole  of  the  principal  of  all  the  outstanding  bonds 
hereby  secured  shall,  at  the  option  of  the  holders  of  such  bonds,  respectively, 
become  due  and  be  payable,  and  the  lien  hereby  created  may  be  enforced  for 
the  whole  debt;  and  the  party  of  the  second  part  and  its  successors  shall 
on  the  written  request  of  the  holders  of  a  majority  of  said  bonds  then  out- 
standing take  possession  of  the  property  and  franchises  herein  mortgaged 
or  covenanted  so  to  be ;  and  by  itself  and  agents  or  by  a  receiver  of  a  court 
appointed  in  a  suit  for  the  enforcement  of  this  lien,  or  a  suit  for  such  posses- 
sion, hold,  use,  and  operate  the  same  for  the  equal  benefit  of  the  holders 
of  all  of  the  said  bonds,  and  receive  the  income  and  profits  therefrom;  or 
such  trustee  may  in  such  case,  by  the  judgment  of  a  court  having  jurisdic- 
tion, have  all  the  mortgaged  property  and  franchises  sold  and  conveyed. 
And  at  any  sale  of  any  of  the  said  mortgaged  property  and  franchises,  made 
under  or  by  virtue  of  these  presents,  the  said  trustee  may,  at  the  request 
of  a  majority  in  interest  of  the  outstanding  bonds,  bid  and  purchase,  in  person 
or  by  attorney,  in  behalf  of  the  holders  of  the  outstanding  bonds  herein 
and  hereby  secured.  What  may  be  received  by  the  trustee  or  receiver 
from  income  and  profits  and  the  proceeds  of  sale  shall  be  applied  as  follows : 

1.  To  the  expenses  incurred  in  and  about  the  proceedings,  the  execution 
of  this  trust,  the  preservation  and  operation  of  said  property,  the  reasonable 


Securities.  23 

compensation  to  the  said  trustee,  or  its  successors,  and  the  agent  and  attorney 
of  said  trustee,  or  its  successors,  all  taxes,  assessments,  and  levies  on  said 
property,  all  damages  to  which  the  party  of  the  second  part,  or  its  suc- 
cessors, may  become  liable  by  reason  of  the  management  of  said  property, 
and  any  other  proper  charge  or  expense,  not  caused  by  the  gross  negligence 
or  willful  misconduct  of  the  party  of  the  second  part  or  its  successors. 

2.  To  the  payment  of  the  outstanding  bonds  and  the  interest  thereon, 
herein  and  hereby  secured,  ratably  and  without  discrimination  or  preference. 

3.  Any  surplus  shall  be  returned  to  the  party  of  the  first  part. 

Fourthly.  If  the  party  of  the  first  part  shall  at  any  time  before  a  sale 
of  the  mortgaged  property  and  before  the  first  day  of  September,  in  the 
year  1915,  pay  all  the  interest  then  due  on  said  bonds,  and  all  installments 
then  due  ^on  account  of  the  said  sinking  fund,  and  all  expenses,  compen- 
sations, taxes,  assessments,  levies,  and  damages,  then  and  in  that  case  the 
bonds  shall  not  be  regarded  as  due,  and  there  shall  be  no  sale  of  the  said 
property  for  past  failures. 

Fifthly.  The  party  of  the  second  part,  as  trustee  or  otherwise,  shall  be 
under  no  obligation  to  recognize  any  person  or  persons,  firm  or  corporation, 
as  holder  or  holders,  owner  or  owners,  of  one  or  more  of  the  bonds  secured 
hereby,  or  to  do  or  refrain  from  doing  any  act  pursuant  to  the  request  or  de- 
mand of  any  person  or  persons,  firm  or  corporation,  professing  or  claiming  to 
be  such  holder  or  owner,  until  such  supposed  holder  or  holders  shall  produce 
the  said  bonds  and  deposit  the  same  with  the  trustee,  and  shall  indemnify 
and  save  harmless  the  trustee,  to  its  full  satisfaction,  from  any  and  all 
costs  and  expenses,  outlays  and  counsel  fees  and  other  reasonable  disburse- 
ments for  which  it  may  become  liable  or  responsible  on  proceeding  to  carry 
out  such  request  or  demand.  The  right  of  action  under  this  indenture 
is  vested  exclusively  in  the  trustee,  and  under  no  circumstances  shall  any 
bondholder  or  any  number  of  bondholders  have  any  right  to  institute  an 
action  or  other  proceeding  on  or  under  this  indenture  for  the  purpose  of 
enforcing  any  remedy  herein  and  hereby  provided,  except  in  case  of  refusal 
on  the  part  of  the  trustee  to  perform  any  duty  imposed  on  it  by  this  agree- 
ment ;  and  all  actions  and  proceedings  for  the  purpose  of  enforcing  the  pro- 
visions of  this  indenture  shall  be  instituted  and  conducted  by  the  trustee, 
according  to  its  sound  discretion;  but  the  trustee  shall  be  under  no  obliga- 
tion to  institute  any  such  suit  or  to  take  any  proceedings  under  this  indenture 
until  it  shall  be  indemnified  to  its  satisfaction  for  all  expenses  and  costs  of 
every  kind,  and  also  for  all  possible  claims  for  damages.  Should  any  suit 
or  other  proceeding  be  brought  against  the  trustee  by  reason  of  any  matter 
or  thing  connected  with  the  trusts  hereby  created,  or  by  reason  of  its  being 
such  trustee,  it  shall  be  under  no  obligation  to  enter  any  appearance  by 
counsel,  or  in  any  way  to  appear  in  and  defend  the  said  suit  or  other  pro- 
ceeding, until  indemnified  to  its  satisfaction  for  so  doing;  but  it  may  never- 


24  Corporation  Accounting  and  Management. 

theless  appear  and  defend  the  same  without  indemnity  if  it  shall  elect 
so  to  do,  and  in  such  case  it  shall  be  compensated  therefor  from  the  trust 
fund.  In  case  at  any  time  it  shall  be  necessary  and  proper  for  the  trustee 
to  make  any  investigation  respecting  any  facts  preparatory  to  taking  or 
not  taking  any  action,  or  doing  or  not  doing  any  thing  as  such  trustee, 
the  certificate  of  the  party  of  the  first  part,  under  its  corporate  seal,  attested 
by  the  signature  of  its  president  and  the  affidavit  of  one  or  more  directors, 
shall  be  sufficient  evidence  of  such  fact  to  protect  the  trustee  in  any  action 
that  it  may  take  by  reason  of  the  supposed  existence  of  such  fact.  It 
shall  be  no  part  of  the  duty  of  the  party  of  the  second  part  to  see  to  the 
recording  of  this  indenture  as  a  mortgage  or  conveyance  of  real  estate,  or 
to  the  filing  thereof  as  a  chattel  mortgage,  or  renewing  such  mortgage,  or 
to  do  any  other  act  which  may  be  suitable  and  proper  to  be  done  for  the 
continuing  of  the  lien  of  this  indenture,  or  for  giving  notice  of  the  existence 
of  such  lien;  nor  shall  it  be  any  part  of  its  duty  to  effect  insurance  against 
fire  or  other  damage  on  any  of  the  mortgaged  property,  or  to  renew  any 
policies  of  insurance.  The  trustee  shall  only  be  responsible  for  reasonable 
diligence  in  the  performance  of  the  trust,  and  shall  not  be  answerable  in 
any  case  for  the  act  or  default  of  any  agent,  attorney  or  employee  selected 
with  reasonable  discretion.  The  trustee  shall  be  entitled  to  be  reimbursed 
all  proper  outlays  of  every  sort  or  nature  by  it  incurred  in  the  discharge 
of  its  trust,  and  to  receive  a  reasonable  and  proper  compensation  for  any 
duties  that  it  may  at  any  time  perform  in  the  discharge  of  the  same;  and 
all  such  fees,  commissions,  compensation,  and  disbursements  shall  constitute 
a  lien  on  the  mortgaged  property  and  premises.  The  recitals  herein  con- 
tained are  made  on  behalf  of  the  party  of  the  first  part,  and  the  party  of 
the  second  part  assumes  no  responsibility  as  to  the  correctness  of  any 
statement  therein  containe'd. 

Sixthly.  The  party  of  the  first  part  shall  indemnify  and  hold  harmless 
the  party  of  the  second  part  and  its  successors  against  any  loss  or  damage 
which  it  may  incur  or  to  which  it  may  be  subjected  by  reason  of  accepting 
or  executing  this  trust,  not  caused  by  its  gross  negligence  or  willful  mis- 
conduct. 

Seventhly.  The  dissolution,  death,  incapacity,  insolvency,  refusal  to 
act  or  resignation  of  any  trustee  under  this  mortgage  shall  produce  a 
vacancy  in  the  trust  hereby  created,  and  in  the  event  of  such  vacancy  it 

shall  be  lawful  for  the  judge  of  the  Circuit  Court  of county, 

in  the  state  of ,  during  term  time  or  in  vacation,  on  the  peti- 
tion of  the  holders  of  not  les*s  than  a  majority  of  the  said  bonds  then  out- 
standing, to  appoint  from  time  to  time  a  trustee  or  trustees  to  fill  the 
vacancy  so  produced;  and  the  trustee  or  trustees  so  appointed  shall  be 
clothed  with  all  the  rights,  powers,  and  privileges  conferred  by  this  mortgage 
upon  the  party  of  the  second  part. 


Securities.  25 

Eighthly.  And  as  further  security  for  the  payment  of  the  said  interest 
and  principal,  and  of  the  said  sinking  fund  installments,  the  party  of  the 
first  part  has  assigned,  transferred,  and  set  over,  and  by  these  presents 
assigns,  transfers,  and  sets  over,  to  the  party  of  the  second  part  and  its  suc- 
cessors all  its  claims  and  demands  during  the  existence  of  any  part  of  this 

mortgage  debt,  against  the  said  city  of  for  the  rent  of  fire 

hydrants  under  the  ordinance  hereinbefore  mentioned,  and  under  any 
additional  water-works  ordinances  of  the  mayor  and  common  council  of 

the  city  of ,  including  the  right  of  the  party  of  the  first  part 

to  the  special  fund  out  of  which  such  demands  are  payable;  and  the  party 
of  the  first  part  hereby  irrevocably  constitutes  and  appoints  the  said  trustee 
and  its  successors,  its  agent  to  receive  and  receipt  for  all  sums  of  money 

so  accruing  from  the  said  city  of for  the  rent  of  fire  hydrants 

during  the  existence  of  any  part  of  this  mortgage  debt;  it  to  apply  a  suffi- 
ciency to  the  payment  of  the  interest  on  the  outstanding  bonds  as  such 
interest  matures,  and  to  return  any  surplus  on  hand  after  paying  or  pro- 
viding for  all  matured  coupons,  to  the  party  of  the  first  part  on  or  about 
the  first  days  of  April  and  October  of  each  and  every  year. 

Ninthly.  And  if  the  party  of  the  first  part  shall  well  and  truly  pay  or 
cause  to  be  paid  the  interest  on  sjdd  bonds,  and  each  of  them,  as  the  install- 
ments of  said  interest  shall  become  due,  and  the  said  sinking  fund  install- 
ments, as  they  shall  become  due,  and  the  principal  of  said  bonds,  as  it 
shall  become  due,  and  shall  comply  with  all  its  other  obligations,  according 
to  the  true  intent  and  meaning  of  these  presents,  then  and  in  that  event 
the  estate,  right,  title,  and  interest  of  the  party  of  the  second  part  and  its 
successors  in  the  trusts  hereby  created  shall  cease  and  determine ;  otherwise 
the  same  shall  be  and  remain  hi  full  force  and  virtue. 

Tenihly.  And  it  is  expressly  understood  and  agreed  that  the  party  of 
the  first  part  has  the  right  at  its  option  to  call  and  redeem  and  cause  to  be 
redeemed  any  or  all  of  the  said  bonds,  at  par  and  accrued  interest,  in  advance 
of  maturity,  on  and  after  the  first  day  of  September,  1895,  in  such  hist  ali- 
ments and  at  such  times  as  the  party  of  the  first  part  at  its  option  may  from 
time  to  time  elect. 

Ix  WITNESS  WHEREOF,  The Water  Company,  of 

,  party  of  the  first  part,  has  on  this  first  day  of  September  in  the 

year  one  thousand  eight  hundred  and  eighty-five,  sealed  this  mortgage 
with  its  corporate  seal,  and  has  caused  this  mortgage  to  be  signed  by  its 
president  and  secretary  for  and  in  behalf  of  the  party  of  the  first  part; 

and  The  Trust  Company,  the  party  of  the  second  part,  has 

sealed  the  same  and  caused  it  to  be  signed  by  its  president,  to  attest  its 
acceptance  of  the  trusts  conferred  upon  it  by  the  foregoing  mortgage. 

THE  WATER  COMPANY,  OF , 

by ,  its  President, 

[SEAL]         and  by ,  its  Secretary. 


26  Corporation  Accounting  and  Management, 

Signed,  sealed,  and  delivered  by  The    Water  Company, 

of ,  in  the  presence  of : 


THE  TRUST  COMPANY, 

[SEAL]  by ,  its  President. 

Attest: 

,  its  Secretary. 

Signed,  sealed,  and  delivered  by  The Trust  Company, 

in  the  presence  of: 


STATE  OF    , 

County  of • 

BE  IT  REMEMBERED,  That  on  this  first  day  of  September,  in  the  year 
of  our  Lord  one  thousand  eight  hundred  and  eighty-five,  in  the  county 

and  state  aforesaid,  before  me, ,  a  notary  public 

duly  commissioned  in  and  for  the  county  and  state  aforesaid,  came 

,  who  is  personally  known  to  me  to  be  the  same  person 

who  executed  the  foregoing  instrument  as  president  of  

Water  Company,  of  ,  named  therein,  and  he  duly 

acknowledged  the  execution  of  the  same,  and  that  the  said  instrument  was 
the  act  and  deed  of  the  said  corporation. 

And  the  said ,  being  by  rne  duly  sworn,  did  depose 

and  say :  That  he  resides  in  the  city  of ,  in  the  county  of 

,  in  the  state  of  ,  and  is  the  president  of  The 

Water  Company,  of ,  the  corporation 

described  in  and  which  executed  the  foregoing  instrument;  that  the  seal 
thereto  affixed  is  the  corporate  seal  of  said  company,  and  that  it  was  so 
affixed  by  its  authority. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
notarial  seal,  the  said  first  day  of  September,  1885. 

,  Notary  Public. 

[SEAL] 


Securities.  27 

STATE  OF    

County  of 

BE  IT  REMEMBERED,  That  on  this  third  day  of  September,  in  the  year  of 
our  Lord  one  thousand  eight  hundred  and  eighty-five,  hi  the  county  and 
state  aforesaid,  before  me,  ,  a  notary  public  duly  com- 
missioned in  and  for  the  county  and  state  aforesaid,  came , 

who  is  personally  known  to  me  to  be  the  same  person  who  executed  the 

foregoing  instrument  as  secretary  of  The Water  Company, 

of  ,  named  therein,  and  he  duly  acknowledged  the 

execution  of  the  same,  and  that  the  said  instrument  was  the  act  and  deed 

of  the  said  corporation;  and  the  said  ,  being  by  me 

duly  sworn,  did  depose  and  say :  That  he  resides  in  the  city  of , 

in  the  county  of ,  in  the  state  of ,  and 

is  the  secretary  of  The  Water  Company,  of 

,  the  corporation  described  in  and  which  executed  the  fore- 
going instrument. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand  and  affixed  my 
notarial  seal  the  said  third  day  of  September,  1885. 


Notary  Public. 


PART    III. 

WATER    WORKS. 


On  the  commencement  of  business  the  corporation  generally 
issues  a  pamphlet  or  flyer,  embodying  their  rates,  rules,  and  regu- 
lations, a  copy  of  which  is  at  the  disposal  of  all,  and  at  the  same 
time  opens  what  is  termed  an  Application  Book. 

(Form  106) 

(Form  of  Application  Book.) 

BOSTON,  MASS., 190  . 

CONSUMER'S   WATER   COMPANY. 

The  undersigned  hereby  makes  application  to  the  aforesaid  company 

for  a  supply  of  water  at premises,  located  at 

and  occupied  by    for    

purposes  only,  and  agrees  to  pay  for  same  in  accordance  with  the  rates, 
rules,  and  regulations  of  said  company,  now  or  hereafter  in  force;  and 
further  agrees  that  the  said  company  may  enter  upon  the  premises  or  any 

lands  owned  by or  in  which 

has  a  right,  for  laying  all  pipes  that  may  be  necessary  for  such  supply,  and 
that  said  company  may  inspect  and  repair  such  pipes  at  any  time  when 
occasion  requires. 

(Signature)    

This  is  the  authority  or  contract  under  which  the  water- works 
superintendent  makes  the  service  connection. 


SERVICE  CARD. 

When  the  service-pipe  connection  is  completed,  the  superin- 
tendent makes  out  a  "  service  card,"  showing  the  service  number, 
date  ordered  put  in,  house  number,  street,  name  of  customer,  size 
of  the  connection,  kind  and  length  of  pipe  from  main  to  line,  line 
to  stop  and  waste,  with  shut-offs,  etc.,  thereon;  and  on  the  back 
of  the  card  draws  a  sketch  or  diagram  of  the  connection. 

If  desired,  the  data  showing  the  connection  can  be  plotted  on 
a  set  of  plans  showing  the  system  of  works  and  connections. 


Water  Works.  29 

If  company  charges  customer  for  tapping  distribution  pipe, 
or  for  the  pipe  from  same  to  his  property  line,  bill  can  be  made 
direct  from  this  card  and  proper  record  thereof  made  in  the  cus- 
tomer's register  hereinafter  described,  after  which  the  card  can 
be  filed. 

(Form  B) 

CONSUMER'S  WATER  COMPANY. 

SERVICE    CARD. 

Xo BOSTON,  MASS., 1905. 

Ordered  put  in. 

Xame 

Location House  Xo 

.  Kind  of  Pipe inch     pipe 

From  Main  to  Line feet 

„     Line  „  Curb „ 

„     Curb  „   Stop  and  Waste „ 

N      -top  and  Wastes 

Xo.  Tees Xo.  Elbows 

Xo.  Crosses Xo.  Unions 

Other  Fittings 

Total  Length Feet 

Remarks  : ... 


Approved  by 1905. 

Inspector. 
(See  sketch  on  back  showing  connection.) 


PLUMBER'S  CARD. 

After  the  plumber  has  installed  the  fixtures,  he  makes  a  return 
thereof  on  a  "  plumber's  card,"  showing  the  date,  service  number, 
name  of  customer,  purposes  for  which  supply  is  to  be  used,  and 
the  number  and  kind  of  fixtures  connected,  either  on  the  inside 
or  outside  of  the  premises,  transmitting  same  to  the  company 
whose  representative  makes  an  inspection  of  same,  and  if  found 


30 


Corporation  Accounting  and  Management. 


satisfactory,  countersigns  the  card.  The  fixtures  connected  with 
the  service  can  then  be  entered  in  the  inspection  part  of  the  register 
and  card  filed. 


(Form  C) 


Service 
No... 


CONSUMER'S   WATER   COMPANY. 


PLUMBER'S    CARD. 


BOSTON,  MASS.  , 1905. 

I  have  connected  Service  No this  day, 

House  No Street. 

Owned  by 

Occupied    by 

For purposes  as   below. 


KIND 

NUMBER 

«       1        : 

Rooms  in  House 

,0                OS 

a      ^       i 

Families  Supplied 

£ 

1st  Faucet 

Additional  Faucets 

Bath  Tubs 

Water  Closets 

Urinals 

Laundry  Tubs 

• 

Hose 

Fountains 

Horses 

. 

1         ; 

o>                : 
A               : 

WATER,  TAP,  AND  SERVICE  PIPE  BILLS. 

All  bills  for  water,  taps,  and  service  pipes  are  first  entered  in 
the  register.  In  order  to  avoid  confusion  and  to  expedite  posting, 
bills  for  metered  water,  unmetered  water,  or  fixture  rates,  service 
pipes  and  taps  should  be  printed  on  paper  of  different  colors. 

Bills  are  made  with  stub  attachments,  the  stubs  being  retained 
by  the  collector  as  his  memoranda  for  moneys  received. 


Water  Works. 


31 


(Form  D)       (Form  of  Meter  Bill.) 

%  CONSUMER'S  WATER  COMPANY. 

Service  No BOSTON,  MASS., 1905. 

M DR. 

To  Water  Rent  from to 1905. 

Present  meter  reading cu.  ft. 

Last  .  cu.  ft. 


cu.  ft 


@  per  M, 

Received  Payment, 


Collector. 

(Bills  for  metered  water  are  due  and  payable  on 
the  first  day  of  each  quarter.) 


DO  NOT 
DETACH   STUB. 


Service  No. . 

M 

Meter  Rates 

From 

To  . 


Amount,   $ . 
Discount,  $. 
Balance 
Due,  $ 


DO    NOT 
DETACH    STUB. 


(Form  E)        (Form  of  Fixture  Bill.) 

(Bring  this  bill  with  you  and  do  not  detach  Stub.) 

CONSUMER'S  WATER  COMPANY. 

Service  No BOSTON,  MASS., 1905. 

M DR. 

To  Water  Rates  for  year  ending  1905: 

1st  Faucet,  $ 

Add  1  Faucets,  

Bath  Tubs,  

Water  Closets, 

Set  Basins,  

Set  Tubs,  

Hose,  

Sprinklers,  

Fountains,  

Horses,  

Cows,  

Greenhouses,  


Total, 
Received  Payment, 


Collector. 
(Over) 
See  copy  Rates,  Rules,  and  Regulations. 


DO  NOT 

DETACH    STUB. 


Service  No 

M 

Water  Rates  for 
Year  ending  1905. 


Amount,   $ . . . 
Abatement,  $. 

Balance 

Due,*.... 


Paid 
when, 


DO  NOT 

DETACH    STUB. 


32 


Corporation  Accounting  and  Management. 


. 

CQ 

DO  NOT 
DETACH  STU 

Service  No  

M 

1         1    I   ^         1 

0                 8        03      5      T3      -f 

1        5^1 

wiicii,  .%..., 

DO  NOT 
DETACH  STU] 

O 

« 

&                | 

^ 

§ 

& 

M 

0 

g 

:      a 

1 

8 

?          i 

•s 

&< 

£ 

—          cc 

M              30 

3        ^ 

| 

1 

.§ 

H      g 

.g        (g) 

1 

^    i 

%  i 

1 

•N 
-(-2 
g 

1 

W       PQ 
P 

j      1     1 

| 

OQ 

CH           fli        F"S 

^ 

525 

"^       -*^        O 

8 

1    ^ 

^J*                     ***^        F^J 

£         S    ^> 

c*    ^    r*    ^         °^* 

J   "S   3  *i    or  -^ 

^j      'JH      GQ       O 

M                :   £    £ 

U               :    £    a 

^ 

Cu                      !     -5     43 

G 

fc 

H                      I    H     H 

1 

8 

Water  Works. 


COLLECTOR'S  REPORT. 


33 


The  collector  makes  a  report  to  the  treasurer  or  other  officer 
either  daily,  weekly,  or  monthly,  as  the  occasion  or  custom  re- 
quires, on  a  printed  form  arranged  in  a  columnar  manner,  showing 
the  number  of  service,  name  of  customer,  amounts  received  for 
water  (meter  and  fixture  basis  separately),  taps,  service  pipes, 
meter  rentals,  miscellaneous,  and  date  when  paid. 

The  total  of  this  report  should  agree  with  the  total  of  the  amounts 
as  indicated  on  the  stubs  from  which  he  detached  the  bills.  When 
transmitting  cash  or  check  to  the  treasurer  for  the  amount  thereof, 
with  stubs  attached,  he  receives  a  voucher  signed  by  the  treasurer 
which  is  made  detachable  from  the  report  by  a  perforated  line. 


(Form  G) 


Collector's  Report 

(Daily) 


November  8, 1905 


NO.  OF 
SERVICE 

NAME  OF 

CUSTOMER 

DATE 
OF 
PAYMENT 

• 

FIXTURES 

Al 

rcR 

SERVICE 

METE) 

MISCE' 

L 

TOTAL 

TOTALS 

Received  from  John  Jones.  Collector  $ 

per  hi$  report  of with  Stubs  attached 


TREASURER 


34 


Corporation  Accounting  and  Management. 
TREASURER'S   STATEMENT. 


Should  the  collections  be  made  direct  by  the  treasurer,  he  can 
make  out  a  "  statement  of  collections  "  on  a  form  similar  to 
Form  H  and  attach  the  stubs  thereto,  posting  payments  to  the 
respective  customers'  accounts  in  the  registers  hereinafter  men- 
tioned. The  totals  of  the  columns  on  these  statements,  viz., 
metered  water,  fixture  rates,  service  pipes,  taps,  etc.,  should 
also  be  posted  to  the  debit  side  of  his  cash  account  under  their 
respective  columns,  either  daily,  weekly,  or  monthly,  as  the  occa- 
sion or  custom  requires,  after  which  the  statements  can  be  filed. 
In  a  large  works  these  statements  should  be  written  up  and  posted 
daily. 


< 


Water  Works.  35 

CONTROLLING   METHOD. 

This  method  is  arranged  by  the  use  of  a  "  controlling  account " : 
At  the  beginning  of  predetermined  periods  to  debit  customer's 
account  in  the  journal  with  the  total  amounts  as  shown  by  the 
respective  registers  for  water,  taps,  service  pipes,  etc.,  and  credit- 
ing these  accounts  (water,  taps,  service  pipes,  etc.)  in  said  journal, 
posting  same  to  the  ledger  accounts,  and  crediting  customer's 
accounts  and  debiting  cash  in  the  main  ledger  when  payments 
are  made ;  also  to  make  proper  entries  or  allowances  for  all  abate- 
ments, rebates,  outstanding  accounts,  etc.,  at  the  end  of  the  fixed 
periods. 

NOTE. — For  Customer's  Registers  see  Part  IX. 


HOUSE-TO-HOUSE  INSPECTION  AND  METER  BOOKS. 

The  house-to-house  inspection  book  is  arranged  in  a  columnar 
manner,  with  columns  for  service  number,  date  of  inspection, 
name  of  customer,  street,  faucets,  additional  faucets,  bath  tubs, 
additional  bath  tubs,  set  tubs,  water  closets,  hoppers,  urinals, 
hose,  fountains,  horses,  head  of  cattle,  horse-power  boiler,  fans, 
rooms,  valuation,  frontage,  etc.,  depending  entirely  upon  the 
method  of  rating  adopted  by  the  company,  with  end  column  for 
remarks.  This  book  can  be  made  to  run  for  any  number  of 
years. 

For  a  large  city  it  would  be  desirable  to  have  one  or  more  of 
these  books  allotted  to  each  section  or  ward. 

In  case  there  is  no  change  in  either  the  fixtures  or  name  of  cus- 
tomer, no  entry  or  transcript  is  required  to  be  made  in  the  inspec- 
tion part  of  the  register. 

In  order  to  facilitate  the  work  of  inspection  and  expedite  post- 
ing, these  books  should  be  arranged  by  streets  or  routes.  They 
can  be  made  up  in  bound  book  form,  or  on  the  loose-leaf  system, 
as  seems  most  desirable. 


36 


Corporation  Accounting  and  Management. 


1 

3 

M 

30V1NOWJ 

<V? 

NO    vmvA 

wooy 

0 

SNVj 

*rg 

U3      08-d-H 

i 

3TJ.1          OV3H 

PH 

meS 

3 

SN          NOOJ 

3SOH 

rc 

snvNDin 

£ 

SH3ddOH 

w 

S13SOTD  83J.VM 

o 

sannas 

-M 

i,     1.00V 

O3 

saniHiva 

P 

ii   1.0QV 

K 

SJ.3OOVJ 

! 

NAME  OF  CUSTOMER 

ll 

h 

S 

s 

g 

E 

Water  Works.  37 

METER  BOOK. 

This  book  is  arranged  in  a  columnar  manner,  with  columns 
for  service  number,  name  of  customer,  street,  purposes  used, 
meter  number,  size  and  kind,  date,  reading  cubic  feet,  difference 
cubic  feet,  and  column  for  remarks.  These  books  should  be  arranged 
by  streets  or  routes  and  allotted  to  different  sections  or  wards, 
as  the  case  demands. 

These  records  are  often  made  on  loose-leaf  books,  the  inspector 
turning  in  daily  all  readings,  starting  with  a  new  lot  of  loose  leaves 
in  his  folder  each  day,  thereby  enabling  the  accounting  depart- 
ment to  render  bills  expeditiously. 


38 


Corporation  Accounting  and  Management. 


IFFERENC 
CU.  FEET 


1     B 

is 


M 


Water  Works.  39 

ON  AND  OFF  BOOK. 

This  book  is  arranged  in  a  columnar  manner,  with  columns  for 
service  number,  name  of  customer,  location,  fixtures  (on,  off), 
amount  of  rates,  signature  of  customer,  remarks. 

These  records  can  be  kept  in  a  bound  book  or  on  block  form 
of  loose  leaves  manifolded,  the  manifold  copy  being  sent  daily 
to  the  bookkeepers  to  make  proper  entry  in  the  registers  of  the 
services  which  are  reported  to  the  office  as  "  on  "  or  "  off."  If 
kept  in  bound  book,  abstract  of  the  daily  changes  should  be  sent 
to  the  bookkeepers. 

For  large  works,  it  would  be  advisable  to  have  separate  books 
for  services  "  on  "  and  services  "off." 


40 


Corporation  Accounting  and  Management. 


*g 

§°2 


B 

is 


Water  Works.  41 

CASH  BOOK,  JOURNAL,  AND  LEDGER. 

These  three  books  can  be  combined  in  one  volume  or  binding, 
for  a  small  works,  allotting  the  first  part  to  cash,  second  to  journal, 
and  the  last  part  to  ledger,  in  the  proportion  of  one  half,  one 
eighth,  and  three  eighths,  respectively. 

The  journal  and  ledger  are  of  the  usual  ruled  form,  but  the  cash 
book  is  arranged  in  a  columnar  manner,  both  on  the  debit  and 
credit  sides,  thereby  making  it  a  "  cash  ledger." 


42 


Corporation  Accounting  and  Management. 


The  following  suggested  headings  for  columns  for  a  cash  book 
are  intended  for  a  well-equipped  works  in  a  large  city,  which  can 
be  added  to  or  reduced  to  meet  the  needs  of  any  works. 

For  debit  side : 


£ 
§{2 

Si 

II 

o 


Water  Works. 


43 


The  "  expense  "  account  column  is  for  use  in  case  of  sale  of 
any  supplies  by  the  superintendent  which  were  previously  charged 
to  that  account,  such  as  oil,  waste,  postage,  etc.,  and  for  rebates 
on  insurance. 

For  credit  side: 


s 

o 

z 

d 

s 

z 

CO 

0 

8 

•c 

< 

1 

B 

a 

z 

uj 

CO 

1 

M 

B 

\ 

SERVICE  PI 

1 

Z 

1 

• 

gtt 

QI- 
UI  TL 
_l  D 

C  o 
Ul  o 

I  < 

»- 
o 


44  Corporation  Accounting  and  Management. 

The  total  of  the  respective  columns,  excepting  only  "  Other 
Ledger  Accounts "  column,  can  be  summarized  at  any  given 
period,  and  posted  by  one  entry  direct  to  the  ledger,  thereby 
avoiding  a  great  deal  of  unnecessary  bookkeeping. 

The  column  "  Other  Ledger  Accounts  "  is  intended  for  any 
personal  or  impersonal  accounts  with  which  it  is  desired  to  open 
an  account  in  the  ledger,  and  requires  separate  posting  for  each 
account  entered  in  this  column. 

If  payments  are  made  by  check,  with  voucher  attached,  col- 
umns can  be  inserted  for  the  "  Voucher  No."  and  "  Total  of 
Voucher,"  if  desired. 

The  two  blank  columns  referred  to  on  both  debit  and  credit 
sides  are  for  use  in  the  case  of  opening  any  new  active  ledger 
accounts  not  enumerated  above,  which  are  of  a  temporary  char- 
acter, such  as: 

For  debit  side: 

Cash  received  for  the  rent  of  any  land,  buildings,  tools,  or  appa- 
ratus, etc.,  which  are  owned  by  the  company. 

Cash  received  for  notes  issued. 

Cash  received  from  the  sale  of  notes  receivable. 

Cash  received  from  the  sale  of  any  securities,  such  as  bonds, 
stocks,  etc. 

For  credit  side: 

Cash  payments  for  notes  taken  up. 

Unusual  payments  for  the  purchase  of  securities,  such  as  bonds 
for  sinking  fund,  the  retiring  of  any  stocks,  etc. 

Unusual  payments  for  extensive  repairs,  such  as  overhauling 
the  pumping  machinery,  or  on  account  of  a  serious  break  in  the 
mains,  for  which  it  may  be  desired  to  segregate  the  cost  of  such 
extraordinary  repairs  to  determine  the  exact  cost  of  same,  apart 
from  ordinary  items  of  repairs  or  renewals. 


Water  Works. 


45 


A 

• 

£ 

i 

MISCELLANEOUS 

FLUSHING 

I 

— 

OTHER 
LEDGER 
ACCOUNTS 

E 

HYDRANTS 

PRIVATE 

5 
£ 

! 

1U 

o 

a 

h 

METERS 

\  SERVICE 

r  PIPES 

.x-s. 

- 

- 

~ 

-J    O 
u_ 

\ 

46 


Corporation  Accounting  and  Management. 


•s 

<Ki 

o 


OTHER 
LEDGER 
ACCOUNTS 

CONSTRUCTION 

i 

z 

1 

ffi 

h- 

£ 

SERVICE 
PIPES 

H  i 
ai 

INTEREST 
AND 
DISCOUNT 

TAXES 

J 

c 

I 

Water  Works.  47 

If  it  is  desired  to  have  the  accounts  under  the  units  of  Pump- 
ing Station,  Distribution  System,  Fixed  Charges,  General  Expenses, 
and  Construction,  the  headings  for  the  credit  side  of  cash  book, 
or  the  headings  for  the  accounts  payable  book  or  distribution 
book,  if  accounts  are  kept  by  the  controlling  method,  may  be  as 
follows: 


48 


Corporation  Accounting  and  Management. 


J.TENANCE 

FILTERS 

5 

Q 

STATION 

uANEOUS 

RENEWALS 

PUMPING 

1 
5 

ANEOUS 

MISCEL 

REPAIRS, 

1 

z 

Z 

CO 

O 

APPARATUS 

1 

O 

1- 

O 

z 

s 

UJ 

o 
z 
< 

•z. 

UJ 

H 

UJ 

H 

(0 
UJ 

1 

Q 

V)     UJ 
Z)    Z 

.2 

s 

CO 

MISCEL 

f 

0 
•z. 

• 
1 

t/)                     < 

1 

a 

X 

uu 

•z. 

| 

o 

3 

APPARA 
MACI- 

.S 
1* 

1 

O 

1 

.Q 

RENEWALS 

2 

<r 
co 

•8       IH 

.55            "*  z 

tU             fe  = 

o 
5 

E 

to 

1 

co 

DC 

UJ 

cu 

| 

6 

.9 

Q 

REPAIRS, 

V. 

z 

1  % 

£  2 

1-    Q 

z 

O 

OFFICERS 

fc 

1 

a 
a. 

SALARIES 
FORCE  EXECUTIVE 

SERVICE  PIPES 

£ 

RESERV 

• 

OFFICE 

i| 

UJ 

O 

z  ^ 

H    E 

I 

Water  Works.  49 

ACCOUNTS  PAYABLE,  VOUCHERS  PAYABLE,  OR  DISTRIBU- 
TION BOOK. 

In  lieu  of  making  distribution  of  accounts  in  the  cash  book, 
open  what  is  termed  either  an  accounts  payable,  vouchers  payable, 
or  distribution  book,  which  have  practically  the  same  ledger 
headings  as  the  credit  side  of  the  cash  book  herein  outlined,  and 
make  distribution  of  the  invoices  or  vouchers  under  the  suggested 
headings,  opening  account  with  said  book  in  the  main  ledger  by 
the  controlling  method. 

This  method  is  recommended  only  for  the  larger  quasi-public 
corporations,  the  smaller  ones  being  able  to  condense  their  accounts 
in  a  less  number  of  books  by  reducing  the  number  of  ledger  head- 
ings. 

When  the  ledger  headings  and  subdivisions  of  same  are  numer- 
ous, the  accounts  should  be  either  numbered  or  lettered,  which 
facilitates  and  expedites  the  entering,  posting,  and  classification  of 
same. 


50 


Corporation  Accounting  and  Management. 


j 

I 

j 

I 

1 

° 

§ 

• 

| 

H 

£ 
I 

£ 

z 

-  -  s 

1 

° 

1- 

1 

8 

si 

gs 

IsS 

1 

1 

* 

I 

S 

IP 

D 

1 

e 

s 

M 

I 

i 

CO 

« 

z 
• 

B 

5 

£ 

0 
•e) 

S 

« 

1 

< 
_j 
< 

5 

i 

II 

1       • 

ii 

i 

0 

Is 

^  ° 

ii 

0 

VOUCHER  RECO 

i 

s  °- 

5  3 

i 

.2 

I 

Water  Works.  51 

VOUCHER,  CHECK,  AND  DISTRIBUTION. 

The  voucher,  check,  and  distribution  should  be  printed  on  the 
face  of  a  sheet,  thereby  enabling  one  to  make  computations  and 
distribute  the  amount  to  the  appropriate  accounts  without  being 
compelled  to  turn  the  sheet  over  or  upside  down  to  enter  the 
distribution  or  make  comparisons,  thus  minimizing  the  liability 
of  error,  as  it  can  be  readily  seen  at  a  glance  that  the  items  of  the 
distribution  and  total  thereof  correspond  with  the  amount  of 
the  voucher  and  check. 

In  case  the  voucher  is  to  be  folded  for  filing  purposes  after 
payment,  there  should  be  printed  on  the  back,  "  Voucher  No. 


52 


Corporation  Accounting  and  Management. 


I 

8 


13 


w 


cf 

c 
O 

3 

X 

I  i 

£       £      .2 

rt 

c 

a 

II 

— 

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0 

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fllJjl 

5 

|J|J    I 

•;    a>  —  "o 
*  "^    °5 

If 

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h- 

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3 

S 

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1 

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0 

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0 

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0 

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5           Ctf 

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a 
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2     OQ 

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0       > 

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ctf 

(3     DO 

"S 

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>•? 

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5 

5 

o 
o. 

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13 

0 

Q_ 

^M 

E 

E 

o 

'o 

^ 

3 

• 

ctf 

c 

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<3 

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m 

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c 

0 

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d 

i: 

c 

tl 

Q 

6 

Z 

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1 

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a; 

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£ 

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o 

0 

1 

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c 

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L. 

;isodaQ  ao  luauu/Bj  ao; 

LL 

* 

f 

asjopua  puB  p|oj   'qoBiap  ;ou  og 

Water  Works.  53 

CLASSIFICATION  OF  REVENUE,    OPERATION   AND   MAINTE- 
NANCE, FIXED  CHARGES  AND  CONSTRUCTION. 


REVENUE  OR  INCOME. 

(A)  Water. 

(B)  Meter  Rentals. 

(C)  Service  Pipes. 

(D)  Taps. 

Account  (A). 

To  include  all  receipts  for  metered  water,  unmetered  water, 
or  rates  on  a  fixture,  valuation,  room,  frontage,  or  other  basis; 
public  hydrant  rental  or  service,  for  the  payment  of  which  the 
city  or  town  is  responsible;  private  hydrants,  rental  of  hydrants 
on  private  property,  and  flat  rates  for  automatic  sprinklers  or 
private  fire-service  pipes ;  *  flushing  streets  or  sewers ;  street 
sprinkling;  sale  of  all  water,  not  otherwise  accounted,  to  boats 
by  the  barrel,  tank,  or  meter;  to  contractors  for  temporary  use 
of  water,  where  it  would  not  pay  to  install  a  meter;  and  transient 
customers,  such  as  circuses,  etc. 

Account  (B). 

To  include  all  receipts  for  rent  of  meters  of  any  kind,  or  any 
other  apparatus  by  which  water  is  measured  which  are  furnished 
by  the  company. 

Account  (C). 

To  include  all  receipts  for  sale  of  service  pipe  and  fittings  and 
labor  in  laying  and  connecting  same  with  the  system. 

Account  (D). 

To  include  all  receipts  for  tapping  mains,  should  the  works 
charge  customer  therefor. 

*  In  manufacturing  centers  where  there  are  a  great  many  private  fire-service  pipes 
and  automatic  sprinklers,  it  would  be  advisable  to  make  a  separate  subdivision. 


54  Corporation  Accounting  and  Management. 

EXPENDITURES  FOR  OPERATION  AND   MAINTENANCE. 

(E)  Expense. 

(F)  Repairs  and  Renewals. 

(G)  Salaries  and  Wages. 
(H)  Fuel. 

Account  (E). 

To  include  all  charges  for  oil,  waste,  freight,  and  cartage  thereon; 
rent  and  care  of  offices;  insurance  of  real  estate  and  other  prop- 
erty against  fire,  steam  boiler,  accident,  and  liability  insurance; 
legal  expenses;  office  supplies,  such  as  account  books,  printing, 
stationery,  renewals  of  office  furniture,  etc. 

Account  (F). 

To  include  all  charges  for  repairs  and  renewals  of  pumping 
machinery,  mains,  service  pipes,  meters,  reservoirs,  standpipes, 
including  repainting,  etc.,  filters,  including  cleaning  and  washing 
same,  pumping  station  and  grounds,  etc. 

Account  (G). 

.  To  include  all  wages  of  engineers,  firemen,  and  assistants ;  super- 
intendent and  assistants  at  filter;  salaries  of  office  force,  super- 
intendent of  works  and  executive  officers. 

Account  (H). 

To  include  all  charges  for  coal,  wood,  or  other  fuel,  including 
the  handling  of  same  and  freight  and  cartage  thereon,  delivered 
to  the  point  of  use. 


Water  Works.  55 

FIXED   CHARGES. 

(I)  Interest  and  Discount. 
(J)  Taxes. 

Account  (I). 

To  include  interest  on  bonds  and  other  interest-bearing  securi- 
ties; also  interest  and  discount  on  notes  and-  open  accounts,* 
excluding  those  the  proceeds  of  which  are  applied  to  construction. 

Account  (J). 

To  include  all  taxes  of  whatever  nature  assessed  against  the 
property.f 

*  Interest  on  notes  and  open  accounts  is  not  usually  classed  with  fixed  charges, 
but  is  included  herein  as  a  matter  of  convenience  in  accounting.  If  it  is  desired  to 
differentiate,  another  account  could  be  opened,  such  as  "  Interest  and  Discount  on 
Floating  Debt,  etc.,"  or  "  Miscellaneous  Interest." 

t  Some  eminent  authorities  do  not  include  "  Taxes  "  under  the  head  of  fixed 
charges,  but  although  variable,  they  are  a  prior  lien  to  the  interest  on  mortgage  bonds 
and  even  to  charges  for  operation  and  maintenance.  They  are  fixed  in  the  sense  of 
the  familiar  quotation,  "  Nothing  is  certain  but  death  and  taxes." 


56  Corporation  Accounting  and  Management. 

CONSTRUCTION. 

(K)  Extensions  of  Mains. 

(L)  Service  Pipes. 

(M)  Meters. 

(N)  Tools. 

(0)  Miscellaneous. 

Account  (K). 

To  include  the  cost  of  all  pipes,  gates,  hydrants,  special  cast- 
ings, lead,  yarn,  packing,  fuel  (for  melting  lead),  freight  and  cart- 
age thereon,  trenching,  paving,  and  labor  in  extending  the  pipe 
system,  together  with  the  cost  of  supervision. 

Account  (L). 

To  include  the  cost  of  all  new  service  pipes  and  fittings,  with 
freight  and  cartage  thereon,  and  labor  in  laying  and  connecting 
services  with  the  system. 

Account  (M). 

To  include  the  cost  of  all  meters,  meter  boxes,  extension  dials, 
freight  and  cartage  thereon,  and  labor  in  connecting  same. 

Account  (N). 

To  include  the  first  cost  of  all  tools  and  freight  and  cartage 
thereon. 

Account  (0). 

To  include  the  cost  of  all  other  additions  to  or  extensions  of  the 
plant  not  otherwise  enumerated  under  the  head  of  construction, 
which  occurs  occasionally,  such  as  the  installation  of  pumping 
machinery,  pipe  bridge,  etc.,  which  are  not  renewals  or  replace- 
ments. 


57 


FORM  OF  CASH  BOOK  IF  ACCOUNTS  ARE  KEPT  BY  THE 
CONTROLLING  METHOD. 


OTHER 
LEDGER 
ACCOUNTS 

P     <» 

CUSTOMER 
ACCOUNT 

^ 

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OTHER 
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ACCOUNT! 

ACCOUNTS 
PAYABLE 

CO 

5 

0         - 

u. 

B 

§ 

58  Corporation  Accounting  and  Management. 

The  blank  ruled  columns  on  debit  side  are  for  active  accounts 
which  do  not  go  through  the  "  customer's  registers,"  and  for  which 
it  may  be  desired  to  open  ledger  accounts;  those  on  the  credit 
side  for  active  accounts  which  do  not  go  through  the  "  accounts 
payable  or  distribution  book  "  for  which  it  may  be  desired  to  open 
ledger  accounts. 

The  "  other  ledger  accounts  "  column  is  explained  under  Cash 
Book,  Journal  and  Ledger,  Part  III. 

AUXILIARY  BOOKS. 

These  books  relate  principally  to  the  management  and  opera- 
tion of  a  plant  and  have  only  an  indirect  bearing  on  the  revenues, 
assets,  and  liabilities ;  nevertheless  they  are  important  as  a  means 
of  ready  reference,  as  they  serve  to  keep  down  the  cost  of  opera- 
tion, and  should  be  kept  by  all  quasi-public  corporations. 

(A)     CONSTRUCTION  RECORD    BOOK. 

This  book,  as  its  name  implies,  shows  size,  kind,  lengths,  and 
locations  of  all  pipes,  hydrants,  valves,  valve  boxes,  meters,  etc., 
which  are  buried  in  the  ground  to  a  great  extent;  and  details  and 
sketches  of  other  structures,  such  as  pumping  stations,  reservoirs, 
standpipes,  filters,  etc.,  culled  from  the  original  specifications, 
plans,  or  contract  for  building  the  same. 

It  contains  all  information  which  a  general  plan  of  the  works 
should  furnish,  but  in  addition  gives  the  details  of  all  parts  of 
the  construction.  It  is  assumed,  however,  that  all  works  would 
at  least  have  a  general  plan  showing  the  pipe  system  and  connec- 
tions. 

Information  of  this  character  should  be  a  matter  of  record,  for 
in  case  of  absence,  disability,  'or  the  sudden  death  of  a  manager 
or  superintendent  of  a  plant,  who  alone  was  the  possessor  of  this 
data,  emergencies  might  arise,  such  as  a  break  in  the  mains,  which 
might  cause  loss  by  flood  alone  running  into  the  thousands  of 
dollars.  It  serves  also  as  a  record  of  the  invisible  property. 
Simply  as  a  means  of  ready  reference  even  to  one  conversant  with 
the  entire  system,  it  will  economize  in  time  and  labor,  and  at  times 
avoid  large  financial  outlay  to  properly  locate  pipes  and  other 
structures  which  have  been  buried  in  the  ground  for  years. 


Water  Works. 


59 


For  a  large  city  it  would  be  advisable  to  have  a  construction 
record  book,  covering  the  whole  city,  and  in  addition  thereto 
sectional  or  divisional  construction  record  books,  each  superin- 
tendent of  a  division  or  section  being  furnished  with  a  copy  of 
the  construction  records  pertaining  to  his  division. 


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Corporation  Accounting  arid  Management. 


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Water  Works. 


61 


(B)     GATE   BOOK. 

This  book  is  in  the  nature  of  a  small  sketch  book,  which  can  be 
carried  in  the  pocket,  showing  the  location  of  gates  and  hydrants 
by  streets,  also  plugged  branches,  and  is  invaluable  to  a  super- 
intendent, as  it  obviates  the  necessity  of  consulting  the  plans 
continuously.  If  more  than  one  copy  of  the  book  is  desired,  the 
original  sketch  can  be  made  on  tracing  cloth  and  blue-prints 
made  therefrom  at  a  small  expense  for  any  number  of  books. 
They  should  be  indexed  by  streets.  For  a  large  works,  gate  books 
should  be  allotted  to  each  division  or  section. 


•L 


LJf 


62  Corporation  Accounting  and  Management. 

(C)     PUMPING  STATION   RECORD   BOOK. 

This  is  kept  by  the  engineer  or  his  assistant,  which  shows  the 
time  of  pumping,  number  of  revolutions  of  the  pump,  kind  of  coal 
and  amount  used,  number  of  gallons  of  water  pumped  daily, 
pumping  lift,  etc. 

Computations  from  this  data  can  be  made  which  will  show  the 
amount  of  water  pumped  during  the  year,  either  by  water  or  steam 
power,  and  whether  the  pump  is  performing  duty  equivalent  to 
its  rated  efficiency.  If  not,  there  is  a  loss  in  delivery,  which  is 
commonly  called  "  slip,"  and  it  would  be  advisable  to  have  the 
pump  tested  and  put  in  repair,  thereby  keeping  down  operation 
charges  in  reducing  the  amount  of  coal  consumed,  wear  and  tear 
on  pumping  machinery,  and  additional  cost  of  extra  engineering 
force. 

(D)     FILTER  RECORD   BOOK. 

This  book  is  kept  by  the  operator  at  the  filter  plant,  in  a  columnar 
manner,  with  columns  for:  day  of  month;  duration  of  pumping; 
head  on  filters,  before  and  after  using;  number  of  filters  in  use; 
water  filtered  in  twenty-four  hours;  average  rate  of  filtration  per 
filter;  amount  of  water  used  in  washing  filters;  amount  of  alum 
used;  ot'her  chemicals;  compartments  cleaned;  turbidity;  tem- 
peratures, air  and  water;  results  of  analyses,  and  column  for 
remarks,  under  which  can  be  entered  such  data  as  when  filters 
were  scraped,  replenished,  or  washed,  number  of  men  employed, 
teams,  etc. 

(E)  METER  TEST  AND  METER  REPAIR  BOOKS. 

These  books  are  in  the  nature  of  records  of  the  comparative 
efficiency  and  durability  of  the  different  kinds  of  meters  on  the 
market,  and  can  be  arranged  in  a  columnar  manner,  showing  the 
size  and  kind  of  meter,  maker,  head,  openings  or  size  of  streams 
measured,  discharge  cubic  feet,  percentage  of  loss  on  rated  effi- 
ciency, etc.,  with  column  of  remarks,  under  which  can  be  entered 
the  conditions  under  which  the  test  is  made,  for  the  meter  test  book. 

For  meter  repair  book,  columns  for  date  set,  maker,  kind  and 
size  of  meter,  date  repaired,  with  extended  column  for  repairs 
and  renewals,  subdivided  into  columns  for  spindles,  disks,  casings, 
frost  cases,  bolts,  etc.,  following  with  columns  of  cost  and  remarks. 

These  books  can  be  made  up  in  bound  form,  loose  leaves,  or  data 
kept  on  cards,  as  seems  most  desirable. 


Water  Works. 
(F)     DETAILS  OF  HEADINGS  FOR  AUXILIARY  BOOKS. 


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64 


Corporation  Accounting  and  Management. 


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Water  Works.  65 

For  a  small  plant,  the  record  books  enumerated  above,  viz., 
construction  record  book,  equipment  book,  pumping  station, 
real  estate  book,  and  miscellaneous  construction  record  book, 
could  be  incorporated  in  one  book,  allotting  the  greater. part  of 
the  pages  to  pipes,  hydrants,  arid  valves,  as  these  records  are 
active,  due  to  the  extensions  of  the  system,  while  the  other 
records  are  more  of  a  fixed  character. 

If  further  information  is  desired  as  to  the  character  of  the 
fixed  structures,  such  as  reservoirs,  standpipes,  filtration  plants, 
pumping  and  other  machinery,  pumping  stations,  etc.,  a  dozen 
blank  pages  could  be  incorporated  in  the  book,  whereon  sketches 
or  diagrams  could  be  made  showing  the  construction  and  mem- 
oranda of  the  details  thereof  culled  from  the  original  specifica- 
tions or  contract  for  building  same,  thus  having  at  hand 
convenient  references  when  occasion  requires,  obviating  the 
necessity  of  hunting  up  the  original  data  or  contract,  which  may 
have  been  misplaced  or  lost  in  the  files  of  the  office. 


PART  IV. 

GAS  WORKS. 


By  a  few  minor  changes  in  the  wording  -and  headings  of  appli- 
cation book,  service  card,  collector's  report,  treasurer's  state- 
ment, meter  book  and  on  and  off  book,  referred  to  under  Part 
III,  these  are  adaptable  for  gas  works. 

In  lieu  of  plumber's  card  (Form  C,  Part  III),  substitute  a 
gasfitter's  card,  showing  about  the  same  details  as  to  gas  fixtures 
connected. 

The  same  general  form  of  bills  (Form  D)  can  be  used  by  the 
substitution  of  the  word  "  gas  "  for  "  water  ";  also  bill  to  have 
printed  thereon  "  meter  reading,"  "  last  meter  reading,"  "  differ- 
ence cubic  feet,"  "  rate,"  and  "  amount  due."  In  case  company 
rents  or  sells  gas  stoves,  gas  engines,  or  fixtures  to  its  customers, 
these  items  should  be  printed  on  the  bill  in  order  to  economize 
in  clerical  labor. 

NOTE. — For  Customer's  Registers  see  Part  IX. 


CASH  BOOK,  JOURNAL,  AND  LEDGER. 

These  three  books  can  be  combined  in  one  volume  or  binding 
for  a  small  company,  allotting  one  half  of  the  pages  to  cash, 
one  eighth  to  journal,  and  three  eighths  to  ledger.  For  the 
credit  side  of  the  cash  book  a  short  leaf  should  be  inserted,  owing 
to  the  large  number  of  accounts  thereon. 


Gas  Works. 


67 


The  same  general  forms  (M  and  N)  are  recommended,  with  the 
following  headings: 

For  debit  side: 


GAS 

METERS 

1             PUBLIC   LAMPS             1           PRIVATE  LAMPS 

COKE 


BY-PRODUCTS 


TAR  AMMONIACAL   LIQUOR 


RENTS 


GAS   STOVES 


METERS 


ENGINES 


GAS    LAMPS 


SERVICE  PIPES      !  EXPENSE 


OTHER   LEDGER 
ACCOUNTS 


68  Corporation  Accounting  and  Management. 

For  credit  side: 


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Gas  Works.  69 

The  totals  of  the  respective  columns,  excepting  only  "  other 
ledger  accounts "  column,  can  be  summarized  at  any  given 
period,  and  posted  by  one  entry  direct  to  the  ledger,  thereby 
obviating  a  great  deal  of  unnecessary  posting.  The  "  other 
ledger  accounts  "  column,  as  noted  under  Part  III,  is  intended 
for  any  personal  or  impersonal  accounts  with  which  it  is  desired 
to  open  an  account  in  the  ledger,  and  requires  separate  posting 
for  every  item  in  this  column. 

If  payments  are  made  by  voucher  check,  columns  can  be  in- 
serted for  voucher  number  and  total  of  voucher,  which  will 
balance  the  distribution  of  the  check. 

In  lieu  of  making  distribution  of  accounts  in  the  cash  book 
where  there  are  so  many  accounts  and  subdivisions,  which  may 
make  the  book  too  cumbersome  to  handle,  a  distribution  book, 
accounts  payable,  or  vouchers  payable  book  could  be  opened 
and  distributions  made  under  the  suggested  headings  for  all 
disbursements,  opening  account  with  said  book  in  the  main 
ledger  by  the  controlling  method.  (See  Controlling  Method  and 
Accounts  Payable,  Vouchers  Payable,  or  Distribution  Book 
under  Part  III.) 

The  accounts  should  also  have  a  designating  number  or  letter, 
as  found  most  convenient,  which  would  materially  assist  in  the 
entering,  posting,  and  classification. 

• 

CLASSIFICATION  OF  REVENUE,    OPERATION   AND    MAINTE- 
NANCE, MANUFACTURING,   FIXED  CHARGES,  AND 
CONSTRUCTION. 


REVENUE  OR  INCOME. 

(A)  Gas. 

(B)  By-Products. 

(C)  Rents. 

(D)  Service  Pipes. 

Account  (A). 

To  include  all  receipts  for  metered  gas  and  unmetered  gas  for 
public  or  private  lamps,  either  by  moonlight  or  other  schedules. 


70  Corporation  Accounting  and  Management. 

Account  (B). 

To  include  all  receipts  from  the  sale  of  the  by-products,  such 
as  coke,  tar,  and  ammoniacal  liquor.  . 

Account  (C). 

To  include  all  receipts  from  the  rentals  of  gas  stoves,  meters, 
engines,  gas  lamps,  etc. 

Account  (D). 

To  include  all  receipts  for  sale  of  service  pipes  and  fittings 
and  labor  in  laying  and  connecting  same  with  the  system. 


EXPENDITURES  FOR  OPERATION  AND  MAINTENANCE. 

(E)  General  Expenses. 

(F)  Repairs,  Renewals,  and-  Maintenance. 

(G)  Salaries  and  Wages. 

Account  (E). 

To  include  all  charges  for  rent  and  care  of  offices;  insurance  of 
real  estate  and  other  property  against  fire,  steam  boiler,  accident 
and  liability  insurance ;  legal  expenses,  including  therein  damages 
to  persons  and  property;  office  supplies,  such  as  account  books, 
printing,  stationery,  renewals  of  office  furniture,  postage,  etc. 

Account  (F). 

To  include  all  charges  for  repairs,  renewals,  and  maintenance 
of  mains,  service  pipes,  meters,  gas  lamps,  etc.,  together  with 
cost  of  all  labor  and  supplies  necessary  therefor,  including  freight 
and  cartage,  excluding  only  repairs,  renewals,  and  maintenance 
of  manufacturing  plant. 

Account  (G). 

To  include  the  salaries  and  wages  of  inspectors,  meter  readers, 
collectors,  office  force,  and  executive  officers,  etc.,  excluding 
salaries  and  wages  at  manufacturing  plant. 


Gas  Works.  71 

MANUFACTURING  EXPENSES. 
(H)  Manufacturing  Expenses. 

Account  (H). 

To  include  charges  for  coals,  enrichers,  purifying  materials, 
etc.,  delivered  to  the  works;  water;  salaries  and  wages  at  works; 
repairs,  renewals,  and  maintenance  of  works,  etc. 

FIXED  CHARGES. 

(I)  Interest  and  Discount. 
(J)  Taxes. 

Account  (I). 

To  include  all  interest  on  bonds  and  other  interest-bearing 
securities:  also  interest  and  discount  on  notes  and  open  ac- 
counts, except  interest  and  discount  on  notes,  the  proceeds  of 
which  are  applied  to  construction.* 

Account  (J). 

To  include  all  taxes  of  whatever  nature  assessed  against  the 
property.* 


CONSTRUCTION. 

(K)  Real  Estate. 

(L)  Apparatus  and  Machinery. 

(M)  Extension  of  Street  Mains. 

(N)  Meters. 

(0)  Miscellaneous. 

Account  (K). 

To  include  the  cost  of  all  land,  buildings,  wharves,  etc.,  of 
whatever  nature,  with  their  necessary  equipment,  such  as  ele- 
vators, etc.,  and  any  improvements  or  additions  thereto. 

*  See  note  under  Water  Works  Classification. 


72  Corporation  Accounting  and  Management. 

Account  (L). 

To  include  the  cost  of  the  installation  of  all  machinery  and 
manufacturing  appliances,  with  any  additions  or  improvements 
thereof. 

Account  (M). 

To  include  the  cost  of  all  pipes,  gates,  special  castings,  lead, 
packing,  fuel  (for  melting  lead),  and  freight  and  cartage  thereon, 
together  with  the  cost  of  all  trenching,  paving,  and  labor  in 
extending  the  street  mains,  including  the  supervision  thereof. 

Account  (N). 

To  include  the  cost  of  all  meters,  meter  boxes,  extension  dials, 
freight  and  cartage  thereon,  and  labor  in  connecting  same,  and  the 
supervision  thereof. 

Account  (0). 

To  include  the  cost  of  manholes  and  all  other  additions  to  or 
extensions  of  the  plant  not  otherwise  enumerated  under  the  head 
of  construction. 


Gas  Works. 
AUXILIARY  BOOKS. 


73 


Under  this  head,  the  construction  record  (Forms  P  and  P-l) 
and  gate  book(  Form  P-2)  are  deemed  imperative,  as  emergen- 
cies daily  arise,  especially  in  the  large  cities,  where  immediate 
location  of  the  gas  mains  and  connections  demands  accurate  knowl- 
edge, so  that  leaks  can  be  repaired  at  the  earliest  possible  moment. 


(A)    Construction  Record  Book. 


LOCATION 

PIPES 

: 

WEIGHT 

STREET                  FROM                         TO 

KINO 

DIAM. 

LENGTH 

DEPTH 

PER 

LAID 

FOOT 

VALVES  OR   GATES 

VALVE  BOXES 

SIZE 

TURN  TO 
OPEN 

NO. 
THREADS 

MAKER 

SIZE                           LENGTH                          MAKER 

GAS  LAMPS 


GAS  STOVES 


GAS  ENGINES 


SIZE  KIND  DIS.    APART      !  KIND 


KIND  SIZE 


(B)     Equipment  Book  —  Manufacturing  Plant. 


RETORTS 

PURIFIERS 

NO.  OF 
KIND                      NUMBER                                                           MAKER 
;                                '        BENCHES 

NO. 

LENGTH 

WIDTH 

DEPTH 

MAKER 

KIND  H.  P.  NO.    TUBES  SETTING 


GAS  HOLDERS 

NO. 

LOCATION 

DIMENSIONS 

METHOD 

CONSTRUCTION 

CAPACITY 

BUILT  BY 

74 


Corporation  Accounting  and  Management. 
(C)     Real  Estate  Book. 


LAND 

BUILDINGS 

LOCATION 

NO.    OF   FEET 

KIND 

LOCATION 

CHARACTER 

DIMENSIONS 

METHOD  OF 
CONSTRUCTION] 

RIGHTS  OF  WAY 


LOCATION  DESCRIPTION  NO.    FEET 


(D)    Valve  or  Gate  Book. 

This  book  is  in  the  nature  of  a  sketch  book,  showing  the  loca- 
tion of  all  gates  by  streets,  also  the  mains  and  sizes  thereof,  and 
can  be  carried  easily  by  the  superintendent  in  his  pocket.  The 
original  sketches  for  gate  book  can  be  made  on  tracing  paper, 
and  blue-prints  made  therefrom  for  any  number  of  gate  books. 
For  a  large  plant,  gate  books  should  be  allotted  to  each  division, 
and  the  manager  or  superintendent  of  each  division  furnished 
with  one  or  two  copies  of  same,  showing  the  gates  and  connections 
in  his  particular  division. 

It  is  also  advisable  to  have  the  general  construction  record 
book  divided  into  divisions,  and  each  superintendent  of  a  divi- 
sion furnished  with  a  copy  thereof.  This  is  absolutely  neces- 
sary for  a  large  city. 


(E)    Meter  Test  and  Meter  Repair  Books. 

These  books  are  arranged  in  a  columnar  manner,  showing  the 
date  of  test,  maker,  size,  kind,  discharge  cubic  feet,  percentage 
of  loss  on  rated  efficiency,  remarks,  —  for  meter  test  book. 

For  meter  repair  book,  columns  for  date  set,  maker,  kind,  and 
size,  date  repaired,  with  extended  column  for  repairs  and  renew- 
als, subdivided  to  show  all  the  details  desired  of  the  repair  or 
renewal  of  parts'  of  the  meter. 

These  can  be  made  up  in  bound  form,  or  data  kept  on  loose 
leaves  or  cards,  as  seems  most  desirable,  not  bearing  any  records 
pertaining  directly  to  the  finances. 


Gas  Works.  75 

(F)    Manufacturing  Book. 

This  book  is  arranged  in  a  columnar  manner,  running  daily, 
by  months,  with  columns  for  date,  process  used,  number  hours 
making  gas,  coal  carbonized;  subdivided  into  columns, —  kind, 
amount,  quality,  amount  used  by  company  for  other  purposes; 
enrichers, —  kind,  quality,  and  amount;  purifying  materials; 
water;  number  cubic  feet  gas  manufactured;  number  cubic 
feet  gas  sold;  number  cubic  feet  gas  unaccounted  for;  percent- 
age unaccounted  for;  residuals, —  coke,  tar,  and  ammoniacal 
liquor;  average  pressure  on  mains, —  day  and  night;  average 
candle  power  of  gas,  and  column  for  remarks. 

For  a  small  plant  the  record  books,  viz.,  construction  record  book, 
equipment  book,  —  manufacturing  plant,  and  real  estate  book, 
can  be  incorporated  in  one  book,  allotting  the  greater  part  of 
the  pages  to  pipes,  valves,  gas  lamps,  etc.,  these  records  being 
active,  due  to  the  extensions  of  the  system;  while  the  other 
records  are  more  of  a  fixed  character. 

If  further  information  is  desired  as  to  the  character  of  the  fixed 
structures,  such  as  apparatus  and  machinery,  gas  holders,  etc., 
a  few  blank  pages  can  be  incorporated  in  the  book,  whereon 
small  sketches  or  diagrams  could  be  made  showing  the  method 
of  construction  and  memoranda  of  the  details  thereof,  culled  from 
the  original  specifications,  plans,  or  contract  for  building  the 
same,  thereby  having  immediate  access  to  this  data  when  occasion 
requires,  obviating  the  necessity  of  hunting  up  the  original  papers, 
which  may  have  been  misplaced  or  lost  in  the  office  files. 


76 


Corporation  Accounting  and  Management. 


FORM   OF    REPORT    REQUIRED    BY    GAS    AND    ELECTRIC 
LIGHT   COMMISSIONERS   OF   MASSACHUSETTS. 

(Form  107) 

Please  give  full  corporate  title  of  company, 

Date  of  organization,  if  since  June  30,  1903, 

Date  when  company  began  to  sell  gas  or  electric  light,  if  since  June  30,  1903, 

Date  or  dates  during  the  year  of   the  return  when  capital  was  paid  in, 

Location  of  principal  business  office, 

Names  of  the  cities  or  towns  supplied  with  gas  by  the  company,  with  number 

of  consumers'  meters  in  each  place, 
Names  of  the  cities  or  towns  supplied  with  electricity  by  the  company,  with 

number  of  customers  (not  including  the  city  or  town)  in  each  place, 

LIST  OF  SALARIED  OFFICERS. 


NAME. 

OFFICIAL    POSITION. 

ANNUAL  SALARY. 

SCHEDULE  A.— CAPITAL,  DEBTS,  COST  OF  PLANT,  JUNE  30,  1905. 

CAPITAL. 

1.  Capital  authorized  by  charter $ 

2.  Capital  authorized  by  vote  of  company 

3.  Capital  paid  in:  

shares,  par  value,  $  $ 


Whole  number  of  stockholders 

Number  of  stockholders  resident  in  Massachusetts, 
Amount  of  stock  held  in  Massachusetts,  shares. 

Amount  of  stock  held  by  parent  electric  company,  shares. 


DEBITS. 


4.  Bonds  or  notes  issued,*  viz. : 


DATE. 

WHEN 
DUE. 

HOW   SECURED 

RATE    OF 
INTEREST 

AMOUNT. 

$ 

5.  Total  amount  of  bonds  and  notes  . 

6.  Other  permanent  debts,  if  any  *     . 

7.  Capital  paid  in  (as  per  item  3)    .    . 

8.  Total  liability  for  capital  and  loans 


*  This  should  not  include  deposits,  unpaid  interest,  dividends,  amounts  due  or  notes  given 
for  coal  or  other  current  supplies. 


Gas  Works.  77 

COST  OF  PLANT. 

(As    the   accounts   stand  on  the  books  of  the   company  at  the  close 
of  business  June  30,  1905.) 

Gas  Works: 

9.  Cost  of  real  estate     $ 

10.  Cost  of  machinery,  apparatus,  and  other  appliances  used  in 

the  manufacture  of  gas 

11.  Cost  of  street  mains 

12.  Cost  of  meters 

13.  Total  cost  of  gas  plant  as  per  books  of  the  company  June 

30,  1905 

Electric  Works: 

14.  Cost  of  real  estate 

15.  Cost  of  steam  plant 

16.  Cost  of  electric  plant 

17    Cost  of  lines      

18.  Cost  of  transformers 

19.  Cost  of  meters      

20.  Cost  of  arc  lamps 

21.  Total  cost  of  electric  light  plant  as  per  books  of  the  com- 

pany June  30,  1905  .    .    '. 

Other  Works: 

22.  Cost  and  description  of  other  permanent  works,  if  any    . 

23.  Total  cost  of  all  plant  as  per  books  of  the  company  June 

30,  1905 

24.  Amount  (if  any)  charged  to  construction  accounts  during 

the  year 

COMPARISON  OF  VALUES. 

25.  Value  of  gas  works  real  estate,  as  assessed  hi  the  city  or 

town  where  located $ 

26.  Value  of  electric  works  real  estate,  as  assessed  in  the  city 

or  town  where  located 

27.  Value  of  other  gas  works  property,  as  assessed  in  the  city 

or  town  where  located 

28.  Value  of  other  electric  works  property,  as  assessed  in  the 

city  or  town  where  located 

29.  Value  of  any  other  property,  as  assessed  in  the  city  or  town 

where  located 

30.  Total  value  of  plant,  as  assessed  by  local  assessors  May, 

1905 

Total  cost  of  plant  (as  per  item  23) 

31.  Excess  of *  value,  over *  value  . 

Total  cost  of  plant  (as  per  item  23) 

Amount  of  capital  and  loans  (as  per  item  8)      ... 

32.  Cost  of  plant t  than  capital  and  loans  .    .    . 

*  This  blank  to  be  filled  with  the  word  "  assessed  "  or  "  cost,"  as  required. 
t  This  blank  to  be  filled  with  the  word  "  more  "  or  "  less,"  as  required. 


* 


78  Corporation  Accounting  and  Management. 

SCHEDULE  B.— STATEMENT  OF  INCOME  AND  EXPENSES. 
GAS.  —  EXPENSES. 

For  Manufacture  of  Gas: 

1.  Coals  (other  than  those  used  for 

enriching),  including  all   e 
penses  of  depositing  at  works 

2.  Enrichers{™al 

3.  Purifying  materials 

4.  Water 

5.  Wages  at  works 

6.  Repairs  and  maintenance  of  works  (including 

renewal  of  retorts) . 

7.  Apparatus  and  machinery  (station  tools  and 

appliances) 

For  Distribution  of  Gas: 

8.  Wages  of  meter  takers,  clerical  labor  in  this 

department,  and  salary  or  commission  of 
collectors 

9.  Repairs,  renewals,  and  maintenance  of  mains 

and  service  pipes 

10.  Distribution  tools  and  appliances 

11.  Repairs  and  renewals  of  meters  j  Jgnewals" 

12.  Gas  stove  fixing,  repairs  and  renewals     .    .    . 
For  Public  Lamps: 

13.  Lighting  and  repairing  (gas  lamps  only)    ... 

14.  Lighting  and  repairing  and  material  used  for 

other  lamps 

For  Office  Expenses  and  Management: 

15.  Directors'  allowances 

16.  Salaries  of  officers 

17.  General  salaries 

18.  Rent  of  offices  not  owned  by  company    .    .    . 

19.  General  office  expenses 

For  Miscellaneous  Expenses: 

20.  Taxes.    Town  or  city $ 

Corporation 

State  commission  . 


21.  Insurance  j  employer's  liability;   * 

22.  Law  expenses !    .    .  $ 

23.  Claims • 

24.  Bad  debts  * 

25.  Incidental  expenses,  viz.  :f 

a 
b 
20.  Gas  bought  of  Company, 

27.  Total  expenses     . 

28.  Balance  to  profit  and  loss      

Total  Debits 

Ratio  of  operating  expenses  to  gross  earnings    .... 

*  Only  those  included  in  Income  statement,  page  79. 

t  To  include  only  such  items  of  expenses  attending  the  manufacture  and   sale  of    gas  as 
are  not  already  given. 


Gas  Works. 

GAS.  —  INCOME. 

For  the  year  ending  June  30,  1905. 
From  sale  of  Gas: 

1.  Supplied  by  meter,  — 

feet  @  $  per  M  feet. 


79 


.S 


»  ;  » 

;;    I 

Total 

Less  discounts  for  prompt  payments   .... 
Plus  prompt  payment  discounts  lost    .... 

2.  Net  total  from  sales  by  meter 

3.  For  public  lamps,  estimated        feet  @ 

per  M  feet 

4.  Under  contract,  estimated  feet  @ 

per  M  feet 

5.  Sold  to  other  companies : 

Light  Co.,  feet  @  per  M  . 

>»                        »  » 

»                        »  ft 

»                       »  )> 

Total 

6.  Total  from  sale  of  gas 

From  Residual  Products: 

7    Cok    ]•  *ons  ^°  e^ec*r^c  department   .    . 

kG  >  tons  sold  elsewhere .    .  -.    .    .    . 

8.  Tar,  gallons :    .    .    . 

9.  Ammoniacal  liquor 

10.  Total  from  residuals 

From  Other  Sources,  viz.: 

1 1 .  Rent  of  meters 

12.  „       gas  stoves  and  engines  .    .    .    .    . -.    . 

13.  „       gas  lamps 

14.  Public  lamps  other  than  gas  lamps 

Total  income 

Balance  to  profit  and  loss    (if  deficit)     .    .    . 
Total  credits 

*  Such  items  of  income  arising  only  from  the    manufacture   and  sale  of  gas  as  are  not 
included  above. 


80 


Corporation  Accounting  and  Management. 


SCHEDULE  BB.— STATEMENT  OF  INCOME  AND  EXPENSES  FOR  THE 
YEAR  ENDING  JUNE  30,  190  . 

ELECTRIC.  —  EXPENSES. 

For  Manufacture: 

1.  Coal  or  other  fuel,  including  all  expenses  of 
depositing  at  works $ 

2.^ntalsfor{ 

3.  Oil  and  waste 

4.  Water "   .    .    .    . 

5.  Wages  at  station      

6.  Station  repairs 

7.  Steam  plant  repairs 

8.  Electric  plant  repairs 

9.  Apparatus  and  machinery  (station  tools  and 

appliances) 

For  Distribution: 

10.  Wages  for  care  of  lights  and  meters,  clerical 

labor   in   this  department,   and   salary  or 
commission  of  collectors 

11.  Repairs  and  renewals  of  lines 

12.  Repairs  and  renewals  of  meters,    lamps,  and 

motors 

13.  Distribution  tools  and  appliances 

14.  Carbons 

15.  Incandescent  lamps 

For  Office  Expenses  and  Management: 

16.  Directors'  allowances 

17.  Salaries  of  officers 

18.  General  salaries 

19.  Rent  of  offices,  if  separate  from  plant     .    .    . 

20.  General  office  expenses 

For  Miscellaneous  Expenses: 

21.  Taxes.     Town  or  city    .... 

Corporation $ 

State  commission 


22.  Insurance  {  Employer's  'liability! 

23.  Law  expenses 

24.  Claims       

25.  Bad  debts* '  .    . 

26.  Incidental  expenses,  viz.: t 

a  Other  cost  incidental  to  steam  heating    . 
6 

27.  Current  bought  of  Company, 

28.  Total  expenses 

29.  Balance  to  profit  and  loss      

Total  debits    . 


Ratio  of  operating  expenses  to  gross  earnings    .... 

*  Only  those  included  in  Income  statement,  page  81. 

t  To    include    only  such    items    of    expenses    attending    the    manufacture    and  sale    of 
ELECTRICITY  as  are  not  already  given. 


Gas  Works. 


81 


ELECTRIC.— INCOME. 

1.  From  commercial  arc  lights  by  contract     .    .$  $ 

Less  discounts  or  rebates  allowed     . 

2.  From  commercial  incandescent  lights  by  con- 

tract   

Less  discounts  or  rebates  allowed     .    . 

3.  From  commercial  arc  and  incandescent  lights 

by  meter 

Less  discounts  or  rebates  allowed     .    . 

4.  From  public  arc  lights 

Less  discounts  or  rebates  allowed     .    . 

5.  „     public  incandescent  lights 

Less  discounts  or  rebates  allowed     .    . 

6.  „     electric  power {%££*•• 

Less  discounts  or  rebates  allowed    .    . 
.     Total 

7.  Amount  of  current  sold  to  other  companies: 

Electric  Light  Co.,  kilowatts, 

»>  »        »  }) 

Total  net  from  light  and  power 

From  Other  Sources,  viz.: 

8.  Rent  of  fixtures 

9.  Rent  of  meters 

10.  Steam  heating  .    .    . 

11.* 

Total  credits 

Balance  to  profit  and  loss  (if  deficit) 

Total 

*  Such  items  of  income  arising  only  from  the  electric  light  and  power  business  as  are  not 
included  above. 


82  Corporation  Accounting  and  Management. 

SCHEDULE  C.— PROFIT  AND  LOSS  ACCOUNT  FOR  THE  YEAR 
ENDING  JUNE  30,  190  . 

DEBIT. 

For  balance  from  last  account  (if  any),  June  30, 1904 $ 

„    interest  paid  and  accrued  on  bonds,  notes,  loans,  and  de- 
posits, to  June  30,  1905 .• 

„  dividends  declared  on  stock,  viz. : 
per  cent,  due 
per  cent,  due 
per  cent,  due 
per  cent,  due 
For  depreciation : 

Gas  plant 

Electric  plant 

For  other  items,  giving  particulars,  viz. : 

For  amount  carried  to  reserve  fund 

„          „  „        „  depreciation  fund 

„    total  amount  of  debit 

„    balance  (if  surplus) 

Total  debit .......... 

CREDIT. 

By  balance  from  last  account  (it  any),  June  30,  1904 $ 

,,  balance  of  income  as  per  item  28,  Schedule  B, 
gas  business $ 

„  balance  of  income  as  per  item  29,  Schedule  BB, 
electric  business 

„  interest  received  on  loans  or  deposits 

„  rents 

„  other  items,  giving  particulars,  viz.: 

Total  amount  at  credit 

By  balance  (if  deficit) 

Total  credits $ 

SCHEDULE  D.— RESERVED  FUND  ACCOUNT 

CREDIT. 

1.  By  balance  of  account  June  30,  1904 $ 

2.  By  income  during  the  year  from  amount  invested    .... 

3.  By  amount  transferred  'from  profit  and  loss  account    .    .    . 


DEBIT. 


4.  For  * 

5.  Balance,  June  30,  190 


6.  How  is  fund  invested? 

*  Any  sums  charged  to  this  account  during    the    year   ending  June  30,  1905,  stating   the 
purpose  for  which  the  same  were  used. 


Gas  Works.-  83 

SCHEDULE  E.— DEPRECIATION  FUND  ACCOUNT. 


CREDIT. 


By  balance  of  account  June  30,  1904 $ 

By  amount  transferred  from  profit  and  loss  account 


$. 

DEBIT. 

For*  $ 


For  balance  June  30,  1905 


How  is  fund  invested? 

*  Any  sums   charged  to  this  account  during  the  year  ending  June  30,  1905,  stating 
purpose  for  which  used. 


84  Corporation  Accounting  and  Management. 


SCHEDULE  F.— BALANCE  SHEET. 

ASSETS. 


From  return  of 
1904. 


Real  estate  (gas) $ 

Machinery  and  manufacturing  appliances  (gas)   . 

Street  mains  (gas) t 

Services  (gas)      ' 

Meters  (gas) " 

Due  for  gas  *..... 

Gas  coal  on  hand 

Coke  on  hand 

Tar  on  hand 

Enrichers  on  hand 

Purifying  materials  on  hand 

Other  gas  materials  on  hand 

Stoves  on  hand 

Gas  fixtures  on  hand 

Real  estate  (electric) 

Steam  plant  (electric) 

Electric  plant 

Electric  lines 

Transformers 

Electric  meters 

Arc  lamps 

Patent  rights 

Due  for  electric  light  and  power  * 

Fuel  on  hand  (electric  light) 

Carbons  on  hand 

Oil  and  waste  on  h.and 

Incandescent  lamps  on  hand 

Globes  on  hand 

Other  electric  materials  on  hand 

Motors  on  hand      

Electric  fixtures  on  hand 

Horses,  wagons,  etc 

Sundry  accounts  due  the  company 

Office  furniture 

Cash  on  hand 

Notes  receivable 

Investments  (giving  particulars  thereof)!     .    .    . 


Total  assets  as  per  books  of  the  company 
Profit  and  loss  balance  (if  deficit) 
Total  debits 


*  These  items  should  include  the  amount  of  all  bills  for  gas  and  electric  light  and 
power  for  the  month  or  quarter  ending  June  30. 
t  Including  any  real  estate  so  held. 


Gas  Works. 


85 


JUNE  30,  1905. 

LIABILITIES. 
From  return  of 
1904. 

S  Capital  stock $ 

Bonds  issued 

Coupon  notes  * 

Other  notes  payable  * 

Unpaid  bills 

Deposits  by  customers      

Unpaid  dividends 

Interest  due  but  not  paid 

Interest  accrued  but  not  due 

Reserved  fund 

Depreciation  fund      

Amounts  due  from  the  company,  not  included 
above      

$  Total  liabilities  as  per  books  of  the  company  .  $ 

Profit  and  loss  balance  (if  surplus) 

$  Total  credits $ 

*  State  whether  secured  by  mortgage  or  not. 

GENERAL  INFORMATION.— GAS, 


Location  of  gas  works, 
Area  of  land  occupied, 
Number  of  retorts, 

benches  of  1  each. 

benches  of  2  each. 

benches  of  3  each. 


viz. : 

benches  of  4  each, 
benches  of  5  each, 
benches  of  6  each. 


benches  of  7  each, 
benches  of  8  each, 
benches  of  9  each. 


Number  of  benches  rebuilt  during  the  last  year, 

How  long  were  such  benches  hi  actual  use? 

Average  number  of  retorts  employed  from  October  to  March,  inclusive, 

Average  number  of  retorts  employed  the  remainder  of  the  year, 

Description  of  purifiers, 

No.  Length,  Width,  Depth, 

No.  Length,  Width,  Depth, 

Materials  used  in  purifiers, 

Total  amount  of  lime  used  during  the  year,  bushels. 

Quantity  of  gas  purified  per  bushel  of  lime, 

Estimated  total  cost  for  the  year  of  iron  sponge  used,  $ 

Estimated  total  quantity  of  gas  purified  per  bushel  of  iron  sponge, 

Number  of  holders  and  their  location,  viz. : 


No. 

LOCATION  * 

OPEN  OR  COVERED 

DIMENSIONS 

WORKING  CAPACITY 

*  If  not  "  at  works  "  give  the  distance  therefrom. 


86  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION.— Gas  continued. 
Sizes  of  Street  Mains,  and  lengths  of  each  size  in  feet,  viz. : 


SIZES, 
DIAMETERS 

TOTAL  LENGTH  IN  FEET, 
JUNE  30,  1904 

TAKEN  UP 
SINCE 

LAID  SINCE 

TOTAL  LENGTH  IN  FEET, 
JUNE  30,  1905 

1    inch, 

•" 

H    „ 

-"•2        JJ 

2       „ 

2-1     „ 

3       „ 

4       „ 

6       „ 

8       „ 

10       „ 

12       „ 

14       „ 

16       „ 

18       „ 

20       „ 

% 

' 

24       „ 

30       „ 

36       „ 

42       „ 

48       „ 

54       „ 

Totals, 

" 

Gas  Works. 


87 


GENERAL  INFORMATION.—  Gas  continued. 


Estimated  capacity  of  works  5  Af  ff^lf  ^  gaS' 

Perdiem>  <Wate?gas, 

Number  of  feet  of  gas  on  hand  June  30,  1904. 
Number  of  feet  made  during  (  Acetylene  gas, 

j  ®>d  Sas> 
(  Water  gas, 


the  year, 
Number  of  feet  bought 


Number  of  feet  of  gas  sold  by  meter  during  the  year 

Number  of  feet  of  gas  sold  to  other  companies  dur- 
ing the  year 

Number  of  feet  of  gas  supplied  to  public  lamps 
during  the  year 

Number  of  feet  of  gas  used  at  works  and  offices 
during  the  year 

Number  of  feet  of  gas  used  in  the  mills  of  the  com- 
pany *  during  the  year  

Number  of  feet  of  gas  on  hand  June  30,  1905     .    . 


Total 


Total 


Number  of  feet  of  gas  unaccounted  for  during  the  year  .    .    . 

Greatest  output  in  24  hours,  with  date  of  same      

Least  output  in  24  hours,  with  date  of  same 

Number  of  feet  of  gas  sent  out  in  the  daytime  during  the  year, 

Length  and  sizes  of  mains  laid  during  the  year  for  which  con- 
tributions have  been  required  from  consumers,  and  amount 
of  such  contributions 

*  This  question  will  require  an  answer  only  from  companies  engaged  in  other 
manufactures. 


88  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION.— Gas  continued. 
Capacity  of  Meters  and  number  of  each  size  in  use,  viz. : 


SIZE. 
No.  OF 
LIGHTS 

No.  IN  USE  JUNE  30,  1904 

REMOVED 
SINCE 

ADDED 
SINCE 

NUMBER  IN 
USE  JUNE  30, 
1905 

NUMBER 
METER   L'xs 
JUNE  30, 
1905 

2 

3 

5 

10 

20 

25 

30 

35 

40 

45 

50 

60 

80 

100 

125 

150 

180 

200 

250 

300 

400 

500 

Totals, 

Gas  Works. 


89 


GENERAL  INFORMATION.— Gas  continued. 

Is  any  meter  rent  charged,  and  what  is  the  rule  governing  such  charge? 

Number  and  size  of  prepayment  meters  in  use : 

3Lts.,  5Lts.,  10  Us.,  20  Us.    Total, 

Number  of  gas  stoves  used  by  consumers  during  the  year? 

Number  of  stoves  leased  by  the  company? 

Number  of  high  candle  power  lamps  used  by  consumers  during  the  year? 

Number  of  such  lamps  leased  by  company? 

Rental  price  of  same  per  lamp? 

Number  of  gas  engines  used  by  consumers  during  the  year? 

Number  of  gas  engines  leased  by  company? 

Rental  price  of  same? 

Usual  day  pressure  on  street  mams,  as  indicated  at  works? 

Usual  night  pressure  on  street  mains,  as  indicated  at  works? 

Average  candle  power  of  the  gas,  as  determined  by  state  inspector? 

Gross  price  per  1,000  feet  at  the  close  of  the  year? 

Are  discounts  allowed,  and  if  so,  how  are  they  made? 

What  changes  have  been  made  hi  price  or  discounts  during  the  year,  and 
when  made? 

Number  of  public  gas  lamps  supplied  at  close  of  year? 

Price  for  public  gas  lamps? 

Estimated  hourly  consumption  of  each  lamp,  cubic  feet. 

Estimated  number  of  hours  during  the  year  that  each  lamp  is  lighted? 

Kind  of  burner  principally  used  on  public  lamps? 

Number  and  kind  of  public  lamps  other  than  gas  or  electric  lamps  main- 
tained by  the  company? 

Kinds  of  coal  carbonized  (not  including  those  for  making  water  gas)? 

Proportions  of  each,  if  used  together? 

Kind  of  gas  coal  used? 

What  materials  were  used  for  enriching  the  coal  gas? 

Amount  of  each  per  ton  of  coal  carbonized? 

STATEMENT  OF   COAL  GAS  MATERIALS  FOR  YEAR  ENDING  JUNE  30,   ipos. 


AVERAGE 

COST  PER 

ON  HAND 
JUNE  30, 
1904 

RECEIVED 
DURING 
THE  YEAR 

CARBON- 
IZED 
DURING 
THE  YEAR 

UN- 
ACCOUNTED 

FOR 

ON  HAND 
JUNE  30, 
1905 

TON  OF 
2.240  LBS. 
OF  EACH 
KIND 
USED  AT 

THE  WORKS 

Tons 

Tons 

Tons 

Tons 

Tons 

Enriching  coals 

- 

Other  gas  coals 

Naphtha      .    . 

Gals. 

Gals. 

Gals. 

Gals. 

Gals. 

AVERAGE 
COST  PER 
GALLON  OF 
EACH  KIND 
USED  AT 

Other  oils    .    . 

• 

WORKS 

90 


Corporation  Accounting  and  Management. 


GENERAL  INFORMATION.— Gas  continued. 
Statement  of  Residual  Products  for  the  year  ending  June  30,  1905. 


• 

ON  HAND 
JUNE  30, 
1904, 
ESTIMATED 

MADE 
DURING 
THE   YEAR, 
ESTIMATED 

USED 
DURING 
THE   YEAR, 
ESTIMATED 

SOLD 
DURING 
THE  YEAR 

ON  HAND 
JUNE  30, 
1905, 

ESTIMATED 

Coke,  tons 

Tar  (coal  gas),  gallons.  . 
Tar  (water  gas),  gallons  . 
Ammoniacal  liquor,  gallons 

Prices  now  obtained  for  residuals: 

Tar  per  gallon  (coal  gas),          $          Tar  per  gallon  (water  gas),      $ 
Coke,  per  bush.     .    .  $          Ammoniacal  liquor  per  gallon  $ 

Average  number  of  men  employed,  viz. : 


APRIL  TO  SEPTEMBER 


OCTOBER  TO  MARCH 


HOW  EMPLOYED  * 


*  Whether   foremen,  stokers,  yardmen,  etc. 


Gas  Works. 
GENERAL  INFORMATION.— Gas  continued. 


91 


ONLY  THOSE  COMPANIES  MAKING  "WATER  GAS"  ARE  TO  ANSWER    THE     QUES- 
TIONS ON  THIS  PAGE. 

What  patent  process,  if  any,  is  used  in  the  manufacture  of  gas? 

How  long  has  such  process  been  employed? 

Is  said  process  used  alone,  or  as  an  auxiliary  to  the  making  of  coal  gas? 

If  used  as  an  auxiliary,  how  often  is  it  so  used  and  how  long  each  tune? 

At  what  point  in  the  works  is  the  gas  so  made  mixed  with  the  coal  gas? 

Total  amount  of  water  gas  made  during  the  year? 

What  kinds  of  fuel  were  used  for  generating  the  gas? 

What  kinds  of  fuel  were  used  in  carburetting  the  gas  (not  to  include  generator 

fuel)? 
What  kinds  of  fuel  were  used  for  generating  the  steam? 

STATEMENT  OF  WATER   GAS   MATERIALS  FOR  YEAR   ENDING   JUNE   30,    1905. 


1 

AVERAGE 

COST  PER 

TON  OF 

2240  LBS. 

CARBON- 

OF EACH 

ON  HAND 

RECEIV'D 

IZED 

UNAC- 

ON HAND 

KIND 

JUNE  30, 

DURING 

DURING 

COUNTED 

JUNE  30. 

USED    AT 

1904 

THE¥EAR 

THE  YEAR 

FOR 

1905 

THE 

WORKS 

Tons 

Tons 

Tons 

Tons 

Tons 

For  generating  the  gas,  coal 

,            „            „     „  coke 

,  carburetting  „     „    coal 

„     „  coke 

,  generating  steam,  coal 

„      coke 

jj            )> 

AVERAGE 

COST  PER 

G  Y  1.1,0  N 

O7   E\CH 

KTV:> 

USR«>  AT 

THK 

WORKS 

Naphtha             

Gals. 

Gals. 

Gals. 

Gals. 

Gals. 

Other  oils 

Fuel  oil                       ... 

Dimensions  of  generator, 

„  „   superheater, 

,,  „   condenser  or  washer, 

Usual  length  of  runs, 
Capacity  of  works  per  hour,  as  observed  in  actual  use, 


92 


Corporation  Accounting  and  Management. 
GENERAL  INFORMATION.— Gas,  concluded. 


ONLY    THOSE    COMPANIES    MAKING     "OIL    GAS"     ARE     TO     ANSWER     THE     FIVE 
QUESTIONS  FOLLOWING. 

What  patent  process,  if  any,  is  used  in  the  manufacture  of  gas? 

How  long  has  such  process  been  employed? 

Kinds  of  coal  or  other  fuel  used? 

What  percentage  of  the  gas  in  the  holder  is  atmospheric  air? 

At  what  point  in  the  works  is  the  air  mixed  with  the  gas? 

ONLY    THOSE    COMPANIES    MAKING    "ACETYLENE"    GAS    ARE    TO    ANSWER     THE 
QUESTIONS  FOLLOWING. 

What  type  of  generator  is  used  in  the  manufacture  of  the  gas? 
How  long  has  such  apparatus  been  employed  by  this  company? 

QUANTITY  OF  CARBIDE  USED  DURIJSG  THE  YEAR. 


ON  HAND  JUNE 
30,    1904 

RECEIVED 

DURING    THE 

YEAR 

USED  DURING 
THE   YEAR 

ON  HAND 
JUNE  30,  1905 

AVERAGE  COST  OF 

SAME   PER     LB. 

DELIVERED    AT 
WORKS 

. 

• 

Gas  Works. 


93 


GENERAL  INFORMATION.     ELECTRIC  LIGHT, 

Location  of  electric  plant, 

Area  of  land,  and  size  and  material  of  buildings  occupied, 

Are  the  same  owned  or  leased  by  the  company? 

Description  of  motive  power  : 


11 

11 

II 

ii 

•§| 

11 

ii 

h 

Rated  H< 
Powe 
of  Kac 

Rated  He 
Power 
Each 

i 

Usual  Steam 
Pressure 

j 

No.  of 
Revolutions 
per  Minute 

1 

Diameter 

o 

C 

Sj 

w 

S     fl 

ffi 

I 

1=1 

ffl    K 

1 

*i 

i.l 

o"! 

S  c.£ 

CO 

«H 

co 

Q    £ 

W 

H 

O 

E 

11 

g 

a 

S-s 

^ 

j 

O 
K 

s 

cc 

a 

3, 

i 

j 

j| 

TJ 

£* 

3i 

§     II 


94  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION— Electric  Light,  continued. 
Description  of  Dynamos : 


No.  OF 
EACH 
KIND 

MAKER 

CAPACITY  OF  EACH 

IN  KILO- 
WATTS 

IN  LAMPS. 

AMPERES 

No.      Igandle 
1  Power 

Arc: 
Direct  current, 

Arc: 
Alternating  current, 

Incandescent  : 
Direct  current, 
Commercial  system, 

Alternating  current, 
Commercial  system, 

Alternating  current, 
Municipal  incandes- 
cent system, 

Direct  current, 
Municipal  incandes- 
cent system, 

• 

VOLTAGE 

CAPACITY  OF  EACH  IN  K.  W. 

Power  generators, 

Corporation  Accounting  and  Management. 
GENERAL  INFORMATION  —  Electric  Light,  continued. 
DISTRIBUTION  — OVERHEAD  SYSTEM. 

Description  of  the  Arc  Lines,  Direct  Current : 


95 


Amperes 

£ 

•< 

w 

1 

CH 

d 

5 

K 
00 

h 

1 

6 

UOl 

p 

aotg 

ms 

ere 

z 

•< 
o 
fc 

e 
| 

OH 

d 

X 

1 

6 

i 

£ 

Amperes 

& 

^ 

o 

H 

^3 

CH 

d 

H 

•< 

E 

1 

6 

s 
•< 

UOI 

Pl 

^*S 
re 
3  uj 

!§ 

03 

3 

<J 

o 

OH 

d 

1 

£ 

d 

-U 

1 

a 
1 

e) 

0 

S 
O 
-*J 

o 

I 

0 

• 

&Q 

6 

^ 

C 

C 

ii 
i 

£ 
.s 

£ 

1 

^(NCO^OOt-OCCiO^CNCO^iCCOt-OOCi^f^^ 

sxmo; 

113 

1—  (     1—  1                  1-H       ^j          Sgj 

6  6  d  6  6  c  d  6  d  d  d  d  d  d  d  d  6  6  6  £  g  c 

96  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION  —  Electric  Light,  continued. 
DISTRIBUTION  —  OVERHEAD  SYSTEM. 


* 


1 


J| 


j 

tf 

K 

• 

S 

ALLED 

fc 

B 

i 

"o 

—  * 

H 

. 

6 

1 

c 

d 

0 
t 

'X 

1 

6 

PM 

.5 

d 

0 

& 

1 

3 

i 

6 

o 

* 

£ 

AH' 
O 

o 

2 

^ 

£ 

6 

B 

g 

E 

i 

O 

0 

? 

2 

o 

c 
a 

-T  CJ 

1= 

i 

^5 

.2 

• 

xi  a 

)SI0 

i-H(NCOT^iO     -^  •§  ^ 

0   0    0*   0    0*    ^  H  c 

Corporation  Accounting  and  Management. 


97 


GENERAL  INFORMATION — Electric  Light,  continued. 

Description  of  the  Alternating  Current,  municipal  (street  lighting)  system, 
incandescent  lines: 


c 

Length, 
Out  and  Return, 
in  Feet 

SIZE  or  WIRE 

PUBLIC  LAMPS 
INSTALLED 

[N  OFFICE  AND 
STATIONS 

COMMERCIAL 
LAMPS 
INSTALLED 

AMPERES 

No. 

Gauge 

No. 

C.  P. 

No. 

C.  P. 

No. 

C.  P. 

No.    1 

No.    2 

No.    3 

No.    4 

No.    5 

No.    6 

m 

No.    7 

No.    8 

No.    9 

No.  10 

No.  11 

No.  12 

No.  13 

No.  14 

No.  15 

No.  16 

No.  17 

No.  18 

No.  19 

No.  20 

No.  21 

No.  22 

No.  23 

No.  24 

No.  25 

No.  26 

No.  27 

No.  28 

No.  29 

No.  30 

No.  31 

No.  32 

No.  33 

No.  34 

No.  35 

No.  36 

No.  37 

No.  38 

No.  39 

No.  40 

Totals 

Totals 

in  1904, 

'98  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION  — Electric  Light,  continued. 

Description  of    the   Direct  Current,  municipal  (street  lighting)  system, 
incandescent  lines : 


CIRCUITS 

Length  of  Wire, 
Out  and  Return, 
in  Feet 

.      SIZE  OF  WIRE 

LAMPS  INSTALLED 

AMPERES 

No. 

Gauge 

No. 

C.  P. 

No.     1 

No.    2 

No.    3 

No.    4 

No.    5 

V 

No.    6 

No.    7 

No.    8 

No.    9 

No.  10 

No.  11 

No.  12 

No.  13 

• 

No.  14 

No.  15 

No.  16 

No.  17 

• 

No.  18 

No.  19 

No.  20 

Totals 

Totals 

' 

in  1904, 

Corporation  Accounting  and  Management. 
GENERAL  INFORMATION  —  Electric  Light,  continued. 


99 


•r 

§ 


3 

H 

3 

> 

o 

PH 

s 

H 

i 

1 

s 

2 

o 

i 

sc 

o 

OD 

a 

s 

OH* 

d 

^ 

c 

!1 

s 

8 

g 

c3 

0 

o 

• 

6 

CO 

1 

!| 

c 

^ 

h 

F 

i° 

«* 

;  <(> 

' 

c 

2 

RCUIT8 

1-1  <N  CO  ^  10  «0  t^  00  05  O    11         J£  § 

^^      O           c3   r-H 

6 

d  d  .o  d  c  d  6  c  o  6  ^"       £ 

I 


100  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION — Electric  Light,  continued. 


1 

3 

o 
W) 

a 
I 

I 

-a 


I 
£ 


& 


MOTO 
STALL 


jo 


jo 


jo 


PUB 


0000000000    000 


-g    c 

- 


Corporation  Accounting  and  Management. 
GENERAL  INFORMATION  —  Electric  Light,  continued. 


101 


EDISON  OVERHEAD  SYSTEM. 


-ill 
~ 


102  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION — Electric  Light,  continued. 


be 


& 


I 

1 


2 

C 

•S 
I 


c  o  o  o 


C     ej 

"o    o 


Corporation  Accounting  and  Management.  103 

Capacity  of  transformers  and  number  of  each  size  in  use,  viz.: 


CAPACITY  OF 
EACH  IN  16 
C.  P.  LIGHT 

NUMBER  IN  USE 
JUNE  30,  1904 

REMOVED  SINCE 

INSTALLED 
SINCE 

NUMBER  IN  USE, 
JUNE  30,  1905 

5      .     . 

6     .    . 

7     .    . 

10     .    . 

• 

12     .    . 

15     .    . 

18     .    . 

20     .    . 

25     .    . 

30     .    . 

40     .    . 

48     .    . 

50     .    . 

60     .    . 

70     .    . 

. 

75     .    . 

80     .    . 

90     .    . 

100     .    . 

120     .    . 

125     .    . 

150     .    . 

175     .    . 

200     .    . 

240     .    . 

250     .    . 

300     .    . 

350     .    . 

600     .    . 

Totals, 

Total  number  of  incandescent  lamps  (rated  as  16  c.  p.)  supplied  from  all 
Edison  lines, 

Total  number  of  each  size  of  arc  lamps  supplied  from  all  Edison  lines, 


104  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION— Electric  Light,  continued. 
DISTRIBUTION  — UNDERGROUND  SYSTEM. 

Description  of  subways  or  conduits  owned  by  the  company  (not  including 
Edison  tubing),  viz.: 


SIZE  OF  CONDUIT 

TOTAL  LENGTH  IN 
FEET  INSTALLED 
JUNE  30,  1904 

TAKEN  UP 

SINCE 

ADDED  SINCE 

TOTAL  LENGTH  IN 
FEET  INSTALLED 
JUNE  30,  1905 

Single  duct 

2  ducts  .    . 

3  ducts  .    . 

4  ducts  .    . 

5  ducts  .    . 

6  ducts  .    . 

7  ducts  .    . 

8  ducts  .    . 

" 

9  ducts  .   . 

10  ducts  .    . 

% 

11  ducts  .    . 

12  ducts  .    . 

13  ducts  .    . 

14  ducts  .    . 

15  ducts  .    . 

16  ducts  .    . 

17  ducts  .    . 

18  ducts  .    . 

. 

20  ducts  .    . 

21  ducts  .    . 

22  ducts  .    . 

24  ducts  .    . 

25  ducts  .    . 

26  ducts  .    . 

28  ducts  .    . 

29  ducts  .    . 

30  ducts  .    . 

39  ducts  .    . 

45  ducts  .    . 

54  ducts  .    . 

Totals  .    . 

Type  of  duct  above  described : 


Corporation  Accounting  and  Management. 
GENERAL  INFORMATION  —  Electric  Light,  continued. 


105 


Description  of  cables  owned  by  the  company  in  underground  conduits 
not  of  the  Edison  type: 


SIZE  OF  CABLE 

TOTAL  LENGTH  IN- 
FEST INSTALLED 
JUNE  30,  1904 

TAKEN  UP  SINCE 

ADDED  SINCE 

TOTAL  LENGTH  IN 
FEET  INSTALLED 
JUNE  30,  1905 

No.        6.    . 

No.        4.    . 

No.        0.    . 

No.      00.    . 

' 

No.  0000.    . 

350,000  cm. 

500,000  cm. 

600,000  cm. 

1,000,000  cm. 

Total    .    . 

Number  of  manholes, 

Number  of  service  connections, 

Number  of  each  size  of  arc  lamps  supplied  from  the  foregoing  underground 

lines  and  not  given  on  preceding  pages,  giving  street  and  commercial 

lights  separately. 
Number  of  each  size  of  incandescent  lamps    supplied  from  the  foregoing 

underground  lines  and  not  given  on  preceding  pages,  giving  street   and 

commercial  lights  separately. 


STORAGE  BATTERIES. 

Number  of  storage  batteries  in  use  by  company, 

Maker  of  each  battery:   No.  1,  ;  *No.  2,  ; 

No.  3,  ;  No.  4, 

Number  of  cells  in  each  battery:  No.  1,  ;  No.  2,  ; 

No.  3,  ;  No.  4, 

Number  of  plates  in  each  cell:    No.  1,  pos.       ,  neg.       ;   No.  2,  pos.       , 

neg.       ;  No.  3,  pos.       ,  neg.       ;  No.  4,  pos.       ,  neg. 
Area  of  plates:   Battery  No.  1,  :   No.  2,  ;  No.  3, 

;  No.  4, 
Rate  of  charging  in  amperes:   No.  1,  ;   No.  2,  ; 

No.  3,  ;    No.  4, 


RATE  OF  DISCHARGING  IN  AMPERES 

No.  1 

No.  2 

No.  3 

No.  4 

1  hour  
5  hours 

10  hours 

Voltage  per  cell:    No.  1,  max.       ,  min.       ;    No.  2,  max. 
No.  3,  max.        ,  min.          ;  No.  4,  max.        ,  min. 


,  nun. 


106  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION  —  Electric  Light,  continued. 

Total  number  of  motors  supplied  from  all  Edison  lines, 

Total  rated  horse  power  of  such  motors, 

Number  of  company's  poles  set  in  streets  or- public  ways, 

Number  of  company's  poles  set  elsewhere, 

Materials  used  for  poles, 

What  other  means  of  supporting  wires  are  used,  and  to  what  extent? 

Length  in  feet  of  streets  or  public  ways  occupied  by  overhead  lines, 

Number  of  enclosed  arc  lamps  in  use  June  30,  1905, 

Number  of  single  open  arc  lamps  in  use  (not  including  enclosed  arcs),  June 

30,  1905, 

Number  of  double  open  arc  lamps  in  use  June  30,  1905, 
Number  of  carbons  used  during  the  year, 


Corporation  Accounting  and  Management. 


107 


GENERAL  INFORMATION  —  Electric  Light,  continued. 
EDISON  UNDERGROUND  SYSTEM. 

Feeder  tubes,  —  length  of  each  size  in  feet,  viz. : 

TOTAL  LENGTH  TOTAL   LENGTH 

SIZES  INSTALLED  JUNE  30.  TAKEN  UP  SINCE      ADDED  SINCE     I  INSTALLED  JUNE  3 

1904  1905 


Xo.   67 

Xo.   90  . 

Xo.  168  . 

Xo.  206  . 

Xo.  250  . 

Xo.  300  . 

Xo.  350  . 

Xo.  400  . 

Xo.  450  . 

• 

Xo.  500  . 

Xo.  550  . 

Xo.  600  . 

Xo.  650  . 

Xo.  750  . 

Xo.  1,000  . 

Totals  .  . 

Main  tubes,  —  length  of  each  size  in  feet,  viz. : 


TOTAL  LENGTH 

SIZES  INSTALLED  JUNE  30.  TAKEN  UP  SINCE 

1904 


ADDED  SINCE 


TOTAL   LENGTH 

INSTALLED  JUNE  30, 

1905 


Xo.  27  .  . 

Xo.  41  .  . 

Xo.  48  .  . 

Xo.  56  .  . 

Xo.  80  .  . 

X*o.  100  .  . 

Xo'.  105  .  . 

Xo.  120  .  . 

Xo.  150  .  . 

Xo.  168  ..  1 

. 

Xo.  180  .  . 

" 

Xo.  200  .  . 

Xo.  206  .  . 

Xo.  250  .  . 

No.  300  .  . 

, 

Xo.  350  .  . 

Xo.  400  .  . 

Xo.  450  .  . 

Xo.  500  .  . 

Totals  .  . 

Junction  boxes,  —  Xumber  of  each  size  installed  June  30,  1905, 
4  tube,  6  tube,  10  tube,  tube, 


108  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION  —  Electric  Light,  continued. 
Capacity  of  meters  and  number  of  each  size  in  use,  viz. : 


CAPACITY  OP 
EACH  IN   16 
C.    P.  LAMPS 

NUMBER  IN  USE 
JUNE  30,   1904 

REMOVED  SINCE 

ADDED   SINCE 

NUMBER  IN  USE 
JUNE    30,   1905 

3  . 

5  .... 

10  .... 

15  .... 

20  .... 

25  .... 

30  .... 

40  .... 

50  .... 

60  .... 

75  .... 

80  .... 

100  .... 

120  .... 

150  .... 

* 

160  .... 

200  .... 

240  .... 

300  .... 

320  .... 

450  .... 

480  .... 

600  .... 

640  .... 

Tnials  . 

Number  of  customers  supplied  with  incandescent  lights  upon  contract  sys- 
tem, and  number  of  lamps  so  supplied, 
What  minimum  monthly  charge,  if  any,  is  made  for  service? 
Total  number  of  customers  using  commercial  arc  lights, 
Total  number  of  customers  using  commercial*  incandescent  lights, 
Total  number  of  customers  using  only  electric  power, 
Total  number  of  commercial  customers  using  both  arc  and  incandescent 

lights, 
Total  number  of  customers  using  only  commercial  incandescent  lights  on 

arc  circuits, 

Total  number  of  each  size  of  lamps  used  at  station  and  office, 
How  many  lamp  hours  have  2,000  c.p.  lamps  been  run  during  the  year?f 
How  many  lamp  hours  have  1,200  c.p.  lamps  been  run  during  the  year?f 
How  many  lamp  hours  have  J  c.p.  lamps  been  run  during  the  year?f 

How  many  ampere  hours  have  been  delivered  from  station  during  the  year 
from  alternating  current  dynamos? 

*  This  term  to  include  "  domestic  "  lights  or  residence  lighting, 
t  Where  incandescent  lamps  are  run  in  series  on  arc  circuits,  each  group  installed 
is  to  be  considered  an  arc  lamp  for  the  purposes  of  this  question. 
t  If  arc  lamps  of  other  candle  powers  are  used,  please  insert  c.p. 


Corporation  Accounting  and  Management.  109 

GENERAL  INFORMATION  —  Electric  Light,  continued. 

Number  of  kilowatt  hours  delivered  at  switchboard  during  the 
year  from  alternating  current  generators? 

Number  of  kilowatt  hours  delivered  at  switchboard  during  the 
year  from  direct  current  arc  generators? 

Number  of  kilowatt  hours  delivered  at  switchboard  during  the 
year  from  direct  current  power  generators? 

Number  of  kilowatt  hours  delivered  at  switchboard  during  the 
year  from  generators  of  *  volts  potential? 

Total  kilowatt  hours  delivered  at  switchboard  during  the  year? 

Number  of  kilowatt  hours  sold  during  the  year  from  alternating 
current  generators? 

Number  of  kilowatt  hours  sold  during  the  year  from  direct  cur- 
rent arc  generators? 

Number  of  kilowatt  hours  sold  during  the  year  from  direct  cur- 
rent power  generators? 

Number  of  kilowatt  hours  sold  during  the  year  from  direct 
generators  of  *  volts  potential? 

Total  kilowatt  hours  sold  during  the  year 

How  many  kilowatt  hours  have  been  sold  for  power  only? 

Maximum  alternating  current  load  during  the  year,  and  date  of  same, 

Maximum  alternating  current  load  on  day  of  least  output  during  the  year, 
and  date  of  same, 

Maximum  continuous  current  load  during  the  year,  and  date  of  same, 

Maximum  continuous  current  load  on  day  of  least  output  during  the  year, 
and  date  of  same, 

Street  lamps  installed  June  30,   1905: 

Arcs    .    .    .        No.  c.p.,  amperes, 

Incandescents,    No.  c.p.,  amperes, 

*  Please  give  voltage  usually  maintained.     This  question  to  include  all  generators 
not  included  in  the  three  preceding  inquiries. 


110  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION  —  Electric  Light,  continued. 


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Schedule  of  prices  for  public  arc  lights, 


Corporation  Accounting  and  Management.  Ill 

GENERAL  INFORMATION  —  Electric  Light,  continued. 

Schedule  of  prices  for  public  incandescent  lights, 

Number  of  each  size  of  public  incandescent  lamps  renewed  during  the  year, 

Schedule  of  prices  for  commercial  arc  lights, 

Schedule  of  prices  for  commercial  incandescent  lights, 

Schedule  of  prices  for  electric  power, 

Is  any  meter  rent  charged?  What  is  the  rule  governing  such  charge? 

What  changes  have  been  made  during  the  year  in  prices  for  lights  or  power, 

and  when  made? 
What  kinds  of  electric  motors  are  used,  and  for  what  kinds  of  work  are  they 

employed? 

Is  current  furnished  for  light  during  the  daytime? 
Is  current  furnished  for  operating  street  cars? 
Is  current  furnished  for  other  power  during  the  daytime? 


112  Corporation  Accounting  and  Management. 

GENERAL  INFORMATION  —  Electric  Light,  continued. 

STATEMENT  OF  EACH   KIND  OF  COAL   (OF  2,240  LBS.  PER  TON)  OR    OTHER    FUEL 
AT    STATION  FOR  YEAR  ENDING  JUNE  30,   1905. 


AVERAGE 

KIND  OF 
FUEL 

ON  HAND 
JUNE    30, 
1904 

RECEIVED 

DURING     THE 

YEAR 

USED 
DURING   THE 
YEAR 

'UN- 
ACCOUNTED 

FOR 

ON  HAND 
JUNE  30, 
1905 

COST  PER 
TON  OF  EACH 
KIND  USED 

AT  THE 

WORKS 

Tons 

Tons 

Tons 

Tons 

Tons 

Does  the  company  wire  buildings?     If  so,  on  what  terms? 

On  what  terms  does  the  company  furnish  incandescent  lamps  and  renewals 

of  the  same? 
Average  number  of  men  employed,  viz.: 


NUMBER   OF   MEN 


HOW    EMPLOYED 


Corporation  Accounting  and  Management.  113 

GENERAL  INFORMATION  —  Electric  Light,  continued. 

What  additions,  alterations  or  improvements  have  been  made  to  or  in  the 

property  of  the  company  since  the  last  return? 
In  Gas  Works: 


In  Electric  Works : 


What  experiments  or  changes  in  methods  of  manufacture  has  the  company 

made  since  its  last  return? 
In  Gas  Works: 


In  Electric  Works: 


What  is  the  total  amount  charged  to  construction  during  the  year  for  the 
following  purposes? 

In  Gas  Works : 

Lands  and  buildings $ 

Machinery  and  appliances 

Mains 

Meters 

In  Electric  Works : 

Land  and  buildings 

Steam  plant 

Electric  plant 

Lines 

Transformers 

Meters 

Arc  lamps 


Total 


114  Corporation  Accounting  and  Management. 

NAMES  AND  RESIDENCE  OF  OFFICERS. 

President, 

Vice-President, 

Manager, 

Superintendent, 

Treasurer, 

Clerk  of  the  corporation, 


NAMES  AND  RESIDENCE  OF  DIRECTORS. 


COMMONWEALTH  OF  MASSACHUSETTS. 

ss. 
Then  personally  appeared 


President. 
Treasurer. 


Directors. 


190 


and  severally  made  oath  to  the  truth  of  the  foregoing  statement  by  them 
subscribed  according  to  their  best  knowledge  and  belief. 

Justice  of  the  Peace. 


Corporation  Accounting  and  Management.  115 

EXTRACTS  FROM  CHAPTER  121  OF  THE  REVISED  LAWS. 

SECTION  5.  Said  board  shall  have  the  general  supervision  of  all  corpo- 
rations and  companies  which  are  engaged  hi  the  manufacture  and  sale  of 
gas  or  electricity  for  light  or  heat,  and  shall  make  all  necessary  examina- 
tions and  inquiries  and  keep  themselves  informed  as  to  the  compliance  of 
the  several  corporations  and  companies  with  the  provisions  of  law. 

SECTION  29.  Corporations  and  companies  which  are  engaged  in  the 
manufacture  and  sale  of  gas  or  electricity  for  light  or  heat  shall  keep  their 
books  and  accounts  in  a  form  to  be  prescribed  by  the  board  of  gas  and  electric 
light  commissioners,  and  the  accounts  shall  be  closed  annually  on  the 
thirtieth  day  of  June,  so  that  a  balance  sheet  of  that  date  can  be  taken 
therefrom.  Manufacturing  companies  in  which  the  manufacture  of  gas 
is  a  minor  portion  of  their  business  shall  be  required  to  keep  accounts  of  the 
expenses  and  income  of  their  gas  business  only. 

SECTION  30.  Persons  or  corporations  engaged  in  the  manufacture  or  sale 
of  gas  or  electric  light  shall  keep  such  records  of  their  work  at  their  manu- 
facturing station,  and  in  respect  to  their  distributing  plant,  as  the  board  of 
gas  and  electric  light  commissioners  may  from  time  to  time  require.  Said 
records  shall  be  in  such  form  as  the  board  may  prescribe. 

SECTION  32.  Each  such  gas  or  electric  light  corporation  or  company  neg- 
lecting to  make  the  annual  return  required  by  the  preceding  section  shall,  for 
the  first  fifteen  days  or  portion  thereof  during  which  such  neglect  continues, 
forfeit  five  dollars  a  day ;  for  the  second  fifteen  days  or  any  portion  thereof, 
ten  dollars  a  day;  and  for  each  day  thereafter  not  more  than  fifteen  dollars 
a  day.  If  any  company  unreasonably  refuses  or  neglects  to  make  such 
return,  it  shall,  in  addition  thereto,  forfeit  not  more  than  five  hundred 
dollars  for  each  offence.  All  forfeitures  recovered  under  the  provisions  of 
this  section  shall  be  paid  into  the  treasury  of  the  commonwealth  and  applied 
to  the  payment  of  the  expenses  of  the  board. 

SECTION  41.  In  the  construction  of  sections  four,  five,  six,  seven,  eight, 
twenty-eight,  twenty-nine,  thirty-one,  thirty-three  and  thirty-four  of 
this  chapter,  the  terms  "  gas  company  "  and  "  corporation  "  shall  include 
all  persons  owning  or  operating  works  for  the  manufacture  and  sale  of  gas 
for  heating  or  illuminating  purposes  within  the  commonwealth,  and  the 
terms  "  company  "  and  "  companies  "  shall  include  all  corporations  or  indi- 
viduals engaged  in  the  manufacture  and  sale  of  electric  light  within  the  com- 
monwealth. 


FROM  CHAPTER  406  OF  THE  ACTS  OF  1903. 

SECTION  1.  Corporations  and  companies  engaged  in  the  manufacture 
and  sale  of  gas  or  electricity  for  light  or  heat  shall  annually,  on  or  before 
the  second  Wednesday  of  September,  make  to  said  board,  in  a  form  pre- 
scribed by  it,  a  return  for  the  year  ending  on  the  thirtieth  day  of  June 
preceding,  signed  and  sworn  to  by  its  president  and  treasurer  and  a  majority 
of  the  directors,  of  the  amount  of  its  authorized  capital,  its  indebtedness 
and  financial  condition,  on  the  said  thirtieth  day  of  June  preceding,  its 
income  and  expenses  during  the  preceding  year,  its  dividends  paid  out  and 
declared,  a  list  of  the  names  of  all  its  salaried  officers,  and  the  amount  of 
the  annual  salary  paid  to  each,  and  the  balance  sheet  of  its  accounts  as  of 
said  preceding  thirtieth  day  of  June.  Every  such  corporation  and  company 
shall  at  all  times,  upon  request,  furnish  any  information  required  by  the 
board  relative  to  its  condition,  management  and  operation,  and  shall  comply 
with  all  lawful  orders  of  said  board. 


PART  V. 

ELECTRIC  LIGHT  WORKS. 


In  the  form  of  application  book  referred  to  under  Part  III,  by 
the  substitution  of  the  word  "  electricity  "  in  lieu  of  "  water,"  and* 
the  words  "  conduits,  poles,  and  wires,"  in  lieu  of  "  pipes,"  this 
book  is  adaptable  for  electric  light  works.  If,  however,  further 
details  are  desired,  the  number  of  arcs,  nights  per  week,  hours  of 
burning,  candle  power,  horse-power  of  motors  and  fans,  period  of 
contract,  rate,  etc.,  can  be  incorporated. 

In  lieu  of  "service  card  "  and  "  plumber's  card  "  referred  to  under 
Part  III,  substitute  an  "  electrician's  card,"  which  will  show  the 
service  number,  name  of  customer,  location,  size,  kind  and  length 
of  wire,  number  and  kind  of  poles,  cross  arms,  conduits;  number 
arid  kind  of  lights,  candle  power,  and  horse-power  of  motors,  etc. 

The  same  general  forms  of  collector's  report  and  treasurer's 
statement  referred  to  under  Part  III  are  applicable,  by  inserting 
columns  for  electricity  subdivided  into  columns  for  meters,  power, 
advertising,  etc.;  and  rent  subdivided  into  columns  for  meters, 
fixtures,  and  motors,  together  with  column  for  house  wiring. 

BILLS. 

The  same  form  of  bills  (Form  D)  referred  to  under  Part  III  can 
be  used  by  the  substitution  of  the  word  "  electricity  "  for  "  water  " ; 
also  bill  to  have  printed  thereon,  "  meter  reading,  K.  W.,"  "last 
reading,  K.  W.,"  "  difference,  K.  W.,"  "  rate  and  amount  due." 

In  case  electric  light  company  charges  for  house  wiring,  or  rents 
or  sells  fixtures  to  its  customers,  these  items  should  also  be  printed 
on  the  bill  to  save  unnecessary  clerical  labor,  or  else  printed  on 
bills  of  different  color. 

In  the  form  of  meter  book  (Form  J)  under  Part  III,  substi- 
tute "  K.  W."  for  "  Cu.  Ft.";  and  for  the  On  and  Off  book  (Form 
K),  in  lieu  of  column  "  Fixtures,"  substitute  column  "Meter  "  sub- 
divided into  "  On  when  "  and  "  Off  when." 

NOTE.— For  Customer's  Registers,  see  Part  IX. 


Electric  Light  Works. 
CASH  BOOK,  JOURNAL,  AND  LEDGER, 


117 


These  three  books  can  be  combined  in  one  volume  or  binding  for 
a  small  company,  allotting  one  half  of  the  pages  to  cash,  one 
eighth  to  journal,  and  three  eighths  to  ledger.  For  the  credit  side 
of  cash  book  a  short  leaf  should  be  inserted,  owing  to  the  large 
number  of  accounts  thereon. 

The  same  general  forms  (M  and  N)  are  recommended,  with 
ledger  headings  as  follows: 


I 


118  Corporation  Accounting  and  Management. 

For  credit  side : 


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Electric  Light  Works.  119 

The  total  of  all  the  columns,  excepting  only  "  Other  Ledger 
Accounts  "  column,  can  be  summarized  at  any  period  and  posted 
by  one  entry  direct  to  the  ledger,  thereby  avoiding  a  great  deal 
of  unnecessary  posting. 

The  "  Other  Ledger  Accounts  "  column  is  intended  for  any 
personal  or  impersonal  account  with  which  it  is  desired  to  open  an 
account  in  the  ledger,  and  requires  separate  posting  for  every 
item  in  this  column. 

If  payments  are  made  by  voucher  check,  columns  can  be  in- 
serted for  voucher  number  and  total  of  voucher,  the  latter  balanc- 
ing the  distribution  of  the  check. 

For  a  large  plant  it  would  be  advisable  to  open  an  accounts 
payable  or  distribution  book  and  make  distribution  un^ler  the 
suggested  headings  for  all  disbursements,  opening  account  with 
said  book  in  the  main  ledger  by  the  controlling  method.  (See 
Controlling  Method  and  Accounts  Payable,  or  Distribution  Book 
under  Part  III.) 

The  accounts  should  also  have  some  designating  number  or 
letter  when  so  arranged,  which  would  materially  assist  in  the  post- 
ing, entering,  and  classification. 


CLASSIFICATION  OF  REVENUE,    OPERATION,  AND   MAINTE- 
NANCE, FIXED  CHARGES  AND  CONSTRUCTION. 


REVENUE  OR  INCOME. 

(A)  Electricity. 

(B)  Rent. 

(C)  House  Wiring. 

Account  (A). 

To  include  all  receipts  from  commercial  arc  lights  and  com- 
mercial incandescent  lights  by  contract,  for  metered  electricity, 
public  arc  lights,  public  incandescent  lights,  electricity  furnished 
for  power,  advertising,  or  any  other  purposes. 

Account  (B). 
To  include  all  receipts  for  rental  of  meters,  fixtures,  motors,  etc. 

Account  (C). 
To  include  the  receipts  from  house  wiring. 


120  Corporation  Accounting  and  Management. 

EXPENDITURES    FOR    OPERATION,    MAINTENANCE,  AND    MANU- 
FACTURING. 

(D)  General  Expenses. 

(E)  Manufacturing  Expenses. 

(F)  Repairs,  Renewals,  and  Maintenance. 

(G)  Salaries  and  Wages. 

Account  (D). 

To  include  all  charges  for  rent  and  care  of  offices;  insurance  of 
real  estate  and  other  property  against  fire;  steam  boiler,  accident, 
and  liability  insurance;  legal  expenses,  including  therein  damages 
to  persons  or  property;  office  supplies,  such  as  account  books, 
printing,  stationery,  postage,  repairs,  and  renewals  of  office  fur- 
niture, etc. 

Account  (E). 

To  include  all  charges  for  fuel;  rentals  for  real  estate  or  water 
power  at  works;  oil  and  waste;  water;  salaries  and  wages  at 
station,  including  superintendence;  repairs,  renewals,  and  main- 
tenance of  works,  steam  plant,  electric  plant,  water  power  plant, 
canals,  dams,  tail-races,  etc. 

Account  (F). 

To  include  all  charges  for  repairs,  renewals,  and  maintenance  of 
poles,  lines,  meters,  motors,  lamps,  carbons,  globes,  etc.,  excluding 
only  repairs,  renewals,  and  maintenance  of  power  station. 

Account  (G). 

To  include  the  salaries  and  wages  of  meter  readers,  collectors, 
office  and  executive  force,  excluding  salaries  and  wages  at  power 
station. 

FIXED  CHARGES. 

(H)  Interest  and  Discount. 

(I)  Taxes. 

Account  (H). 

To  include  interest  on  bonds  and  other  interest-bearing  securi- 
ties; also  interest  and-  discount  on  notes  and  open  accounts, 
excepting  only  interest  and  discount  on  construction  items.* 

*  See  note  under  Water  Works  Classification. 


Electric  Light  Works.  121 

Account  (I). 

To  include  all  taxes  of  whatever  nature  assessed  against  the 
property.* 


CONSTRUCTION. 

(J)  Real  Estate. 

(K)  Apparatus  and  Machinery. 

(L)  Lines. 

(M)  Meters. 

(N)  Miscellaneous. 

Account  (J). 

To  include  the  cost  of  all  land,  buildings,  shanties,  wharves,  etc., 
of  whatever  nature,  with  their  necessary  equipment,  such  as 
elevators,  piers,  etc.,  with  any  additions  or  improvements  thereof. 

Account  (K). 

To  include  the  cost  of  installation  of  all  machinery  and  manu- 
facturing appliances,  such  as  water-power  plant,  including  therein 
dams,  canals,  penstocks,  tail-races,  etc.;  steam  plant, —  engines, 
boilers,  heaters,  condensers,  etc. ;  electric  plant, —  dynamos,  switch- 
boards, generators,  transformers,  regulators,  etc.,  in  station. 

'  Account  (L). 

To  include  the  cost  of  installation  of  all  street  and  service  lines, 
overhead  and  underground,  including  poles,  wiring,  cross  arms, 
conduits,  cables,  manholes,  etc. 

Account  (M). 

To  include  the  cost  of  all  meters  and  meter  appliances,  together 
with  freight  and  cartage  thereon,  and  all  labor  and  superintend- 
ence in  connecting  same  with  the  system. 

Account  (N). 

To  include  the  cost  of  all  office  furniture  and  fixtures  and 
any  other  extensions  or  additions  to  the  property  not  otherwise 
enumerated. 

*  See  note  under  Water  Works  Classification. 


122 


Corporation  Accounting  and  Management. 
AUXILIARY  BOOKS. 


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124  Corporation  Accounting  and  Management. 

(C)    Station  Record. 

This  book  is  made  up  in  a  columnar  manner,  with  columns  for 
date,  hours  running,  condensing,  non-condensing,  tons  of  coal 
used,  maximum  horse-power  lamps  burning,  average  horse- 
power lamps  burning,  direct  current  output,  alternating  current 
output,  total  current  output,  and  column  for  remarks. 

(D)     Real  Estate  Book. 


LAND 

BUILDINGS 

REMARKS 

Location 

No.  Feet 

Location 

Character 

Dimensions 

RIGHTS  OF  WAY 

Location 

Description 

No.    Feet 

For  a  small  plant,  the  record  books,  viz.,  construction  record 
book,  equipment  book,  power  station  and  real  estate  book,  can 
be  incorporated  in  one  book,  allotting  the  greater  part  of  the  pages 
to  poles,  wires,  underground  conduits,  manholes,  arc  lamps, 
incandescent  lamps,  transformers,  sub-stations,  motors,  and  public 
lamps,  as  these  records  are  active,  due  to  the  extensions  of  the 
system,  while  the  other  records  are  more  of  a  fixed  character. 

If  further  information  is  desired  as  to  the  character  of  the  fixed 
structures,  such  as  power  station  and  other  buildings,  apparatus 
and  machinery,  a  dozen  or  so  blank  pages  could  be  incorporated 
in  the  book,  whereon  sketches  or  diagrams  could  be  made,  showing 
the  construction  and  memoranda  of  the  details  thereof  entered 
from  the  original  specifications  or  contracts  for  building  the  same, 
thus  having  immediate  access  to  this  data  when  occasion  requires, 
obviating  the  necessity  of  hunting  up  the  contract  or  data  which 
may  have  been  misplaced  or  lost  in  the  office  files. 

NOTE.  —  See  form  of  report  required  by  gas  and  electric  light 
commissioners  of  Massachusetts  at  the  end  of  Part  IV. 


PART  VI. 

STEAM  HEATING  WORKS. 


By  a  few  minor  changes  in  the  wordings  and  headings  of  appli- 
cation book,  service  card,  collector's  report,  treasurer's  statement, 
and  on  and  off  books  referred  to  under  Part  III,  these  can  be  used 
for  steam  heating  works. 

In  lieu  of  plumber's  card  '(Form  C),  Part  III,  substitute  a 
"  steam  fitter's  card,"  showing  about  the  same  details  as  to  fix- 
tures used  in  this  class  of  business;  also  the  number  of  feet  of 
floor  surface,  the  ratings  as  a  rule  in  steam  heating  companies 
being  made  upon  this  basis. 

The  same  general  form  of  bills  (Form  D)  can  be  used  by  the 

substitution  of  the  phrase  "  Steam  heat  for  .'....  feet  of 

floor  surface." 

In  case  company  sells  or  rents  fixtures,  these  should  also  be 
printed  on  the  bill  to  economize  in  clerical  labor. 

Should  steam  heating  company  be  owned  and  operated  jointly 
with  an  electric  company,  it  would  be  advisable  to  have  bills  for 
steam  heat  rendered  on  paper  of  different  color,  in  order  to  avoid 
confusion  and  expedite  posting. 

NOTE. — For  Customer's  Registers,  see  Part  IX. 


CASH  BOOK,  JOURNAL,  AND  LEDGER. 

The  same  general  forms  (M  and  N)  referred  to  under  Part  III 
are  recommended,  with  a  change  of  ledger  headings,  viz. : 

For  debit  side : 


STEAM  HEAT 

SERVICE  PIPES 
AND                       EXPENSE 
FITTINGS 

OTHER   LEDGER 
ACCOUNTS 

126  Corporation  Accounting  and  Management. 

For  credit  side : 


3    0) 
J2    O. 


31 

QC  (J 
U  O 
X  < 


Steam  Heating  Works.  127 

CLASSIFICATION   OF   REVENUE,   OPERATION  AND  MAINTE- 
NANCE,  FIXED   CHARGES,    AND   CONSTRUCTION. 

REVENUE  OR  INCOME. 

(A)  Steam  Heat. 

(B)  Service  Pipes  and  Fittings. 

Account  (A). 

To  include  all  receipts  from  the  sale  of  steam  heat  for  purposes 
of  every  kind. 

Account  (B). 

To  include  all  receipts  from  the  sale  of  service  pipe  and  fittings 
and  for  any  labor  in  laying  and  connecting  same  with  the  distri- 
bution system,  which  is  chargeable  to  customers. 

EXPENDITURES  FOR  OPERATION  AND  MAINTENANCE.* 

(C)  Expense. 

(D)  Salaries  and  Wages. 

(E)  Repairs  and  Renewals. 

(F)  Fuel. 

Account  (C). 

To  include  all  charges  for  rent  and  care  of  office;  insurance  of 
real  estate  and  other  property  against  fire ;  steam  boiler,  accident, 
and  liability  insurance;  legal  expenses;  office  supplies,  such  as 
account  books,  printing,  stationery,  postage,  renewals  of  office 
furniture,  etc.;  oil,  waste,  packing,  etc.,  for  use  at  works,  with 
freight  and  cartage  thereon. 

Account  (D). 

To  include  all  wages  of  engineers,  firemen  and  assistants ;  sala- 
ries of  office  force,  superintendent  of  works  and  executive  officers. 

Account  (E). 

To  include  all  charges  for  repairs  and  renewals  of  machinery 
at  works;  distribution  mains  and  appliances;  manholes,  service 
piping  and  fittings,  etc. 

*  If  it  is  desired  to  show  cost  of  producing  steam,  exclusive  of  its  distribution, 
the  accounts  should  be  arranged  in  the  manner  suggested  for  Gas  Works. 


128  Corporation  Accounting  and  Management. 

Account  (F). 

To  include  all  charges  for  coal,  wood,  or  other  fuel,  including 
the  handling  of  same  and  freight  and  cartage  to  the  works. 


FIXED  CHARGES: 

(G)  Interest  and  Discount. 
(H)  Taxes. 

Account  (G). 

To  include  interest  on  bonds  and  other  interest-bearing  securi- 
ties, also  interest  and  discount  on  notes  and  open  accounts,  ex- 
cepting interest  and  discount  on  construction  items.* 

Account  (H). 

To  include  all  taxes  of  whatever  nature  assessed  against  the 
property.* 


CONSTRUCTION. 

(I)  Distribution  Pipes. 

(J)  Service  Pipes  and  Fittings. 

(K)  Manholes. 

(L)  At  Works. 

(M)  Miscellaneous. 

Account  (I). 

To  include  the  cost  of  all  distribution  pipes,  gates,  special  cast- 
ings, lead,  packing,  fuel  (for  melting  lead),  with  freight  and  cartage 
thereon  to  the  point  of  use ;  trenching,  backfilling,  paving,  and  all 
labor  in  extending  the  distribution  system,  together  with  the  cost 
of  supervision. 

•  Account  (J). 

To  include  the  cost  of  all  new  service  pipes  and  fittings,  with 
freight  and  cartage  thereon,  and  labor  in  laying  and  connecting 
services  with  the  system,  not  otherwise  charged  to  customers. 

*  See  note  under  Water  Works  Classification. 


Steam  Heating  Works.  129 

Account  (K). 

To  include  the  cost  of  all  brick,  cement,  and  stone  manholes, 
manhole  covers,  with  all  freight  and  cartage  thereon  to  point  of 
use,  together  with  the  labor  cost  of  building  same  and  for  any 
supervision  thereof. 

Account  (L). 

To  include  the  cost  of  installation  of  all  machinery  and  appur- 
tenances used  at  the  works,  together  with  the  cost  of  any  additions 
or  improvements  thereof. 

Account  (M). 

To  include  the  cost  of  all  other  additions  to  or  extensions  of 
the  plant  not  otherwise  enumerated  under  construction. 

AUXILIARY   BOOKS. 

Under  the  head  of  Auxiliary  Books  referred  to  under  Parts 
III  and  IV,  the  construction  record  book  (Forms  P  and  P-l)  and 
gate  book  (Form  P-2)  are  the  most  important  for  steam  heating 
works. 

The  construction  record  book  will  show  size,  kind,  length,  and 
location  of  all  pipes,  valves,  valve  boxes,  manholes,  etc.,  which 
are  generally  buried  underground,  and  details  and  sketches  of 
other  structures,  such  as  stations,  sub-stations,  regulators,  engines, 
boilers,  etc. 

The  gate  book  will  show  the  location  of  manholes,  gates,  etc., 
by  streets. 

For  a  small  plant  the  construction  record  .book,  station  equip- 
ment book,  and  real  estate  book  can  be  incorporated  in  one  book, 
allotting  the  greater  part  of  the  pages  to  pipes,  valves,  manholes, 
etc.,  as  these  are  active,  due  to  the  extensions  of  the  system,  while 
the  other  records  are  more  of  a  fixed  character. 

If  further  information  is  desired  as  to  the  character  of  the  fixed 
structures,  such  as  stations,  sub-stations,  machinery,  etc.,  a  few 
blank  pages  could  be  incorporated  in  the  book,  whereon  sketches 
or  diagrams  showing  the  construction  and  memoranda  of  the  details 
thereof  could  be  entered,  culled  from  the  original  specifications  or 
contract  for  building  the  same,  thereby  having  immediate  access 
to  this  data  when  occasion  requires,  avoiding  the  necessity  of 
hunting  up  the  original  data  wrhich  may  have  been  misplaced  or 
lost  in  the  files. 


PART  VII. 

TELEPHONE  COMPANIES. 


Applicants  for  the  use  of  telephone  service  sign  a  contract 
either  for  limited  or  unlimited  service,  guaranteeing  a  certain 
minimum  amount  for  the  use  of  same  and  exchange  service. 

The  limited  service  form  of  contract  allows  a  maximum  number 
of  calls  at  a  stated  figure ;  and  for  all  calls  in  excess  of  the  maximum 
there  is  a  stipulated  charge  for  each  call,  the  cost  of  the  service 
being  based  on  the  number  of  calls  desired  and  whether  on  a 
separate  line  or  in  combination  with  others  using  the  same  line, 
there  being  no  charge  under  ordinary  circumstances  for  the  in- 
stallation. 

The  unlimited  service  allows  the  subscriber  an  indefinite  number 
of  calls  at  a  stated  figure. 

ELECTRICIAN'S   CARD. 

When  the  instruments  are  installed,  the  electrician  makes  a 
return  on  an  "  electrician's  card,"  showing  the  drop  number, 
name  of  subscriber,  location,  size,  kind  and  length  of  wire,  number 
and  kind  of  poles,  cross  arms,  etc.,  together  with  the  details  of 
the  inside  installation,  such  as  number  and  kind  of  telephone, 
extension  bells,  extension  sets,  booths,  etc.,  after  which  all  data 
deemed  necessary  is  transferred  to  the  customer's  register  here- 
inafter mentioned  and  card  filed. 

OPERATOR'S   SHEETS. 

Each  operator  is  supplied  with  a  daily  tally  sheet,  on  which  she 
records  all  calls  inside  circuit  chargeable  to  each  subscriber  in 
her  section,  which  is  turned  over  to  the  accounting  department 
daily.  A  summation  of  the  calls  chargeable  to  each  subscriber 
is  made  monthly,  and  when  same  are  in  excess  of  the  contract 
limitations,  the  subscriber  is  charged  therefor  at  the  stipulated 
rate. 


Telephone  Companies. 


131 


She  is  also  supplied  with  printed  sheets  or  cards,  showing  thereon 
drop  number,  subscriber,  exchange  called,  party  calling,  by  whom 
called,  time,  assignment,  exchange  calling,  messengers,  etc.,  on 
which  she  records  all  long  distance  calls,  either  on  or  from  the 
subscribers  in  her  section.  These  are  also  forwarded  to  the  ac- 
counting department  daily,  which  incorporates  same  with  the 
details  thereof  in  the  regular  bill  for  service  rendered  each  sub- 
scriber at  the  end  of  the  month  or  quarter. 

By  the  filling  in  of  the  columns  "  Exchange  Called  "  and  "  Ex- 
change Calling  "  by  the  operators  at  each  end  of  the  line,  it  not 
only  serves  as  a  check  or  verification  of  the  long  distance  calls  for 
the  company's  information,  but  is  also  available  should  any 
subscriber  question  the  charges  on  his  bill  therefor. 


BILLING  AND   COLLECTIONS. 

The  form  of  bills  can  be  made  with  or  without  stub  attachments, 
depending  on  the  method  of  accounting  in  use. 


(Form  of  Bill.)     (D-l.) 


.190 


To  NORTHERN  TELEPHONE  COMPANY,  DR. 


To  Rental  per  Contract,  for  Quarter  ending. 

or 
from to 


To  Calls  in  excess  of  contract 

To  Long  Distance  Calls    (per  itemized  statement  on 
back,  or  attached) 

To  Miscellaneous  (giving  details) 

Total 

Received  payment  for  Company, 


132 


Corporation  Accounting  and  Management. 


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the  main  office,  while  the  delinquents  need  the  constant  attention  of 
the  collector. 

When  collections  are  made  by  him;  they  are  entered  on  his 
report,  showing  the  drop  number,  name  of  subscriber,  and  amount 


Telephone  Companies.  133 

of  check  or  cash  received;  and  when  same  has  been  transmitted 
to  the  treasurer  or  other  officer,  the  collector  receives  a  receipt 
therefor,  made  detachable  from  the  report  by  a  perforated  line. 

The  form  of  collector's  report  can  be  drawn  up  to  show  the 
details  of  collections,  if  desired,  such  as  rentals,  tolls,  excess  tolls, 
foreign  tolls,  messengers,  etc.,  and  column  for  total.  (See  Form 
G,  Part  III.) 


IN     AND    OUT   BOOK. 

This  book  is  arranged  in  a  columnar  manner  (Form  L),  with 
columns  for  drop  number,  subscriber,  location,  date  connected, 
date  disconnected,  and  contract  classification,  subdivided  into 
columns  for  telephone,  extension  bells,  extension  sets,  booths,  mis- 
cellaneous, and  column  for  remarks.  Abstracts  of  the  daily 
changes  should  be  sent  to  the  bookkeepers. 

For  a  large  company  it  would  be  advisable  to  have  separate 
books,  one  for  the  "  In  "  and  one  for  the  "  Out  "  subscribers. 
If  desired,  columns  can  be  inserted  showing  the  date  of  contract 
and  date  of  its  expiration. 

NOTE.— For  Customer's  Registers,  see  Part  IX. 


134 


Corporation  Accounting  and  Management. 
CASH   BOOK,   JOURNAL,   AND    LEDGER. 


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trolling method  as  suggested  under  Part  III. 


Telephone  Companies.  135 

CLASSIFICATION   OF   REVENUE,   OPERATION  AND  MAINTE- 
NANCE,  FIXED   CHARGES  AND   CONSTRUCTION. 

REVENUE    OR   INCOME. 

(A)  Rentals. 

(B)  Tolls. 

(C)  Excess  Calls. 

(D)  Miscellaneous. 

Account  (A). 

To  include  the  receipts  from  all  rentals,  either  for  the  use  of 
circuit  or  long  distance  lines. 

Account  (B). 

To  include  the  receipts  for  all  tolls  for  telephoning  outside  the 
circuit,  either  on  the  company's  or  other  lines. 

Account  (C). 

To  include  the  receipts  for  all  calls  in  excess  of  the  contract 
limitation. 

Account  (D). 
To  include  receipts  from  all  sources  not  otherwise  enumerated. 

EXPENDITURES   FOR    OPERATION  AND  MAINTENANCE. 

(E)  Expense. 

(F)  Salaries  and  Wages. 

(G)  Repairs,  Renewals,  and  Maintenance. 
(H)  Fuel 

Account  (E). 

To  include  all  charges  for  rent  and  care  of  offices;  insurance  of 
real  estate  and  other  property  against  fire;  steam  boiler,  accident 
and  liability  insurance;  legal  expenses,  including  therein  damages 
to  persons  or  property;  office  supplies,  such  as  account  books, 
printing,  stationery,  postage,  renewals  of  office  furniture,  etc. 

Account  (F). 

To  include  the  salaries  of  all  operators,  collectors,  general  office 
force,  and  executive  officers. 


136  Corporation  Accounting  and  Management. 

Account  (G). 

To  include  all  charges  for  repairs,  renewals,  and  maintenance  of 
instruments;  poles  and  wires;  exchanges;  manholes  and  con- 
duits: real  estate  and  buildings  and  their  appurtenances,  together 
with  the  cost  of  all  supplies  necessary  therefor,  including  freight 
and  cartage  thereon  to  point  of  use. 

Account  (H). 

To  include  all  charges  for  coal,  wood,  or  other  fuel,  including 
the  handling  of  same  and  freight  and  cartage  thereon. 

FIXED    CHARGES. 

(I)  Interest  and  Discount. 

(J)  Taxes. 

(J-l)  Leased  Lines. 

Account  (I). 

To  include  interest  on  bonds  and  other  interest-bearing  securi- 
ties; also  interest  and  discount  on  notes  and  open  accounts, 
excluding  interest  and  discount  on  notes,  the  proceeds  of  which 
are  applied  to  construction  items.* 

Account  (J). 

To  include  all  taxes  and  licenses  of  whatever  nature  assessed 
against  the  property.* 

Account  (J-l). 
To  include  all  charges  for  rental  of  leased  lines  and  exchanges. 


CONSTRUCTION. 

(K)  Instruments. 

(L)  Extensions. 

(M)  Tools. 

(N)  Exchanges. 

(0)  Manholes  and  Conduits. 

(P)  Miscellaneous. 

*  See  note  under  Water  Works  Classification. 


Telephone  Companies.  137 

Account  (K). 

To  include  the  cost  of  all  instruments  of  whatever  nature,  tele- 
phones, switchboards,  etc.,  with  freight  and  cartage  thereon, 
and  cost  of  labor  in  installation,  including  supervision. 

Account  (L). 

To  include  the  cost  of  all  poles,  wires,  cross  arms,  guys,  span 
wires,,  etc.,  with  freight  and  cartage  thereon,  to  point  of  use, 
together  with  the  cost  of  all  labor  in  erecting  same,  including 
supervision. 

Account  (M). 

To  include  the  cost  of  all  tools  and  such  appliances,  with  freight 
and  cartage  thereon. 

Account  (N). 

To  include  the  cost  of  all  buildings  used  as  exchanges  and  any 
improvements  thereof,  including  the  equipment  therein,  such  as 
wiring,  switchboards,  telephones,  office  furniture,  etc. 

Account  (0). 

To  include  the  cost  of  all  manholes  and  conduits,  together  with 
the  cables  laid  therein,  with  freight  and  cartage  on  the  supplies 
necessary  therefor  to  point  of  use;  also  to  include  all  labor  in 
constructing  and  supervision  thereof. 

Account  (P). 

To  include  the  cost  of  all  other  construction  not  previously 
enumerated. 


138 


Corporation  Accounting  and  Management. 
AUXILIARY  BOOKS. 


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Telephone  Companies.  139 

In  large  companies  the  Construction  Record  Book  can  be  sub- 
divided into  districts,  and  each  district  manager  furnished  with 
the  construction  records  pertaining  to  his  division,  so  that  he 
will  have  at  hand  all  the  details  pertaining  thereto  in  an  emer- 
gency. 

Separate  pages  of  the  Construction  Record  Book  should  be 
allotted  to  the  long-distance  lines. 


140 


Corporation  Accounting  and  Management. 


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Telephone  Companies. 
(C)    Real  Estate  Book. 


141 


LAND 

BUILDINGS  OR    EXCHANGES 

I 
Location                 No.   Feet 

Location                Character              Dime 

is.ons          „   Method 
Construction 

RIGHTS  OF  WAY 

Location 

Description 

No.   Feet 

For  a  small  plant,  the  record  books,  viz.,  Construction  Record, 
Equipment  Book,  Power  Station  and  Real  Estate  Book,  could  be 
incorporated  in  one  book,  allowing  the  greater  part  of  the  pages 
to  poles,  wires,  underground  conduits,  manholes,  cables,  circuits, 
switchboards,  etc.,  and  long-distance  lines,  as  these  records  are 
more  active,  due  to  the  extensions  of  the  system,  while  the  other 
records  are  of  a  fixed  character. 

If  further  information  as  to  the  character  of  the  fixed  structures 
is  desired,  such  as  apparatus  and  machinery,  exchanges,  etc., 
a  few  blank  pages  could  be  incorporated  in  the  book,  whereon 
sketches  or  diagrams  could  be  made  showing  the  construction, 
and  memoranda  of  the  details  thereof  could  be  entered,  culled 
from  the  original  specifications  or  contract  for  building  the  same, 
thus  having  immediate  access  to  this  data  when  occasion  requires 
and  avoiding  the  necessity  of  hunting  up  the  original  papers  which 
may  have  been  lost  or  misplaced  in  the  office  files. 


PART  VIII. 

ELECTRIC  RAILWAYS. 


The  business  of  an  electric  railway  compared  with  that  of  other 
quasi-public  corporations  is  mainly  on  a  cash  basis,  and  does  not 
require  the  numerous  books  of  such  corporations  pertaining  to 
the  finances. 

The  ordinary  system  is  generally  divided  into  departments, 
each  department  having  a  receiver  to  whom  the  conductors  turn 
in  their  reports  and  settlements  daily,  and  in  some  cases  after 
each  trip.  The  receiver  turns  over  these  reports  and  settlements 
daily  to  the  collector  from  the  main  office,  where  same  are  audited. 

The  starter  takes  note  of  the  number  on  the  car  registers  at  the 
beginning  and  end  of  each  trip;  and  always  at  the  beginning  and 
end  of  each  day's  work.  These  are  also  forwarded  to  the  main 
office  daily  and  serve  as  a  verification  or  check  on  the  conductor's 
reports. 

CONDUCTOR'S   REPORTS. 

The  usual  form  of  conductor's  report  has  printed  thereon  route, 
date,  car  number,  name  of  conductor,  number  of  conductor, 
number  of  motorman;  cash  fares,  number  and  amount;  ticket 
fares,  number  and  amount;  totals;  and  on  the  back  of  same,  time 
out,  time  in,  hours  and  minutes  of  service  claimed,  trip  number, 
number  on  registers  at  the  beginning  of  each  trip,  ditto  at  end  of 
each  trip,  number  of  cash  passengers,  number  of  ticket  passengers, 
etc. 

INTER-URBAN  STREET  RAILWAYS. 

There  are  many  plans  and  methods  adopted  for  collections  on 
inter-urban  street  railways,  but  the  two  most  simple  and  effective 
plans  are  termed  the  "  Zone  Plan  "  and  "  Duplex  Plan." 

The  Zone  plan  makes  the  rate  of  fare  between  points  five  cents, 
at  each  point  of  which  the  conductor  is  obliged  to  make  a  collec- 
tion of  five  cents,  or  its  equivalent  in  tickets,  ringing  each  collection 
on  its  respective  register. 


Electric  Railways.  143 

The  Duplex  plan  consists  of  two  tickets  or  slips  being  punched 
through  by  the  conductor,  one  half  of  the  ticket  going  to  the 
passenger  and  the  other  half  held  by  the  conductor,  to  be  turned 
in  by  him  with  his  collections,  which  serves  as  a  check  on  the 
amount  of  money  due  from  him. 


FREIGHT  AND  EXPRESS. 

Freight  and  express  traffic  as  a  rule  is  generally  small  in  com- 
parison with  the  passenger  traffic.  The  conductor  is  supplied 
with  sufficient  Duplex  tag  forms,  having  printed  thereon  name, 

address,  box,  barrel,  bag,  etc.,  destination  from  

to  ,  amount  paid,  which  tag  should  be  punched 

by  the  conductor  in  the  square  or  section  designated  by  the  freight 
or  express,  one  half  of  the  tag  to  be  turned  in  to  the  receiver  with 
the  conductor's  report,  the  other  half  to  be  attached  to  the  parcel 
until  delivered,  at  which  time  it  is  detached  and  signature  of  the 
consignee  secured  thereto,  after  which  it  is  turned  in  at  the  office, 
filed  with  receipts  and  held  as  proof  of  delivery. 

In  case  of  a  large  traffic  in  freight  and  express,  the  accounting 
should  be  more  along  the  lines  of  that  for  steam  railways,  espe- 
cially so  when  freight  is  run  on  regular  scheduled  trains.  Fixed 
tariffs  should  then  be  arranged  for  different  commodities,  by  car- 
load and  less  than  carload  lots,  and  regular  waybills  made  in 
duplicate,  the  original  being  turned  over  to  the  conductor,  who 
in  turn  hands  same  over  to  the  receiving  agent,  each  making 
proper  records  to  show  the  handling  of  the  freight  while  in  his  care 
or  possession,  the  receiver  securing  a  receipt  therefor  on  delivery 
to  the  consignee. 

The  business  may  also  warrant  a  daily,  weekly,  or  monthly 
abstract,  both  by  the  forwarding  and  receiving  agents,  showing 
the  date  of  shipment,  waybill  number,  commodity,  weight,  rate, 
amount  paid,  and  amount  to  be  collected. 

The  amount  to  collect  on  the  abstract  of  the  forwarding  agent 
should  agree  with  the  amount  paid  as  shown  by  the  receiver's 
abstract,  plus  the  amount  uncollected  for  undelivered  freight. 


144  Corporation  Accounting  and  Management. 

PAYROLLS. 

Payrolls  for  conductors  and  motormen  of  the  entire  system  are 
made  up  at  the  main  office  from  the  conductors'  reports  or  from 
the  timekeeper's  report  of  the  department.  The  payrolls  for 
barn,  shop,  line,  and  track  men  are  also1  made  up  at  the  main 
office  from  the  daily  report  of  the  foreman  or  timekeeper,  showing 
the  name,  occupation,  rate  per  diem,  with  columns  thereon  for 
the  distribution  of  the  labor  to  their  proper  classifications. 

PAYMASTER. 

The  paymaster  is  given  a  voucher  or  check  for  the  amount  of  the 
payrolls  of  the  department  to  be  paid,  either  the  same  day  or  the 
day  previous  to  the  payment,  and  is  charged  therewith  on  the  books 
at  the  main  office.  Fixed  days  are  allotted  for  the  payment  of 
each  department,  and  at  certain  hours  and  convenient  places  for 
the  employees  thereof.  On  the  return  of  the  payrolls  by  the 
paymaster,  with  proper  signatures  or  receipts  for  the  payments, 
he  is  given  credit  for  the  amount  thereof,  plus  cash  returned  for 
any  unclaimed  wages. 

SUPPLIES. 

Supplies  for  each  department  are  furnished  on  application 
through  Requisition  Forms  (Form  S),  and  when  same  are  duly 
audited,  countersigned  and  sent,  the  respective  department  is 
charged  therewith  on  the  books  at  the  main  office. 

(See  Department  Order,  Requisition  Order,  and  Invoices  under 
Part  X,  Purchasing  Department.) 


CASH  BOOK,  JOURNAL,  AND  LEDGER. 

These  books  can  be  combined  in  one  volume  or  binding  for  a 
small  company,  allotting  the  first  quarter  of  the  book  to  cash, 
second  quarter  to  journal,  and  last  half  to  ledger. 

In  view  of  the  large  number  of  ledger  headings  and  subdivisions 
thereof,  both  for  the  receipts  and  disbursements,  the  best  method 
of  handling  these  accounts  is  to  open  what  is  termed  either  an 


Electric  Railways. 


145 


Accounts  Receivable  Book  or  Earnings  and  Income  Register, 
for  the  receipts,  opening  an  account  with  said  book  or  register  in 
the  main  ledger  by  the  controlling  method,  as  explained  under 
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Corporation  Accounting  and  Management. 


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147 


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148  Corporation  Accounting  and  Management. 

CLASSIFICATION  OF   REVENUE,  OPERATION   AND   MAINTE- 
NANCE, FIXED  CHARGES  AND  CONSTRUCTION. 

REVENUE  AND  INCOME. 

(A)  Car  Earnings. 

(B)  Miscellaneous  Earnings. 

(C)  Miscellaneous  Income. 

Account  (A). 

To  include  all  earnings  from  the  operation  of  cars,  subdivided 
into  earnings  from  passengers  (whether  in  cash  or  tickets),  char- 
tered cars,  freight,  mail,  express,  and  other  car  earnings. 

Account  (B). 

To  include  all  earnings  from  the  operation  of  the  property  (not 
included  under  car  earnings),  subdivided  into  advertising;  rent  of 
land  and  buildings  received  from  property  used  in  the  operation 
of  the  road;  rent  of  tracks,  to  include  all  receipts  for  the  use  of 
tracks,  terminals,  bridges,  etc.;  rent  of  equipment,  to  include  all 
rental  receipts  for  cars  and  other  equipment;  sale  of  power,  to 
include  all  receipts  from  the  sale  of  power  for  whatever  purpose; 
other  miscellaneous  earnings,  to  include  all  other  earnings  not 
heretofore  enumerated. 

Account  (C). 

To  include  all  interest  from  moneys  on  deposit;  income  from 
securities  owned;  income  from  leased  lines  or  terminals,  the 
operation  of  which  has  been  abandoned  by  the  lessor;  and  all 
other  income  not  otherwise  enumerated,  such  as  net  income  from 
real  estate  purchased  as  an  outside  investment;  net  income  from 
the  operation  of  parks  or  any  other  outside  business  conducted 
by  the  company. 


OPERATION  EXPENSES. 


(D)  Maintenance. 

(E)  Transportation. 

(F)  General. 


Electric  Railways.  149 

Account  (D). 

To  include  all  charges  for  maintenance  of  way  and  structures 
and  maintenance  of  equipment. 

Maintenance  of  Way  and  Structures  subdivided  into  classes 
Track  and  Roadway,  Electric  Lines,  Buildings,  and  Fixtures. 

Maintenance  of  Equipment  subdivided  into  classes  Steam  Plant, 
Electric  Plant,  Cars,  Electric  Equipment  of  Cars,  Miscellaneous 
Equipment,  and  Shop  Expenses. 

Charge  to  "  Track  and  Roadway  "  all  expenditures  for  repairs 
and  renewals  of  track  and  roadway,  culverts,  subways,  track  in 
yards,  terminals  or  other  property,  including  labor ,  material, 
tools,  freight,  hauling,  etc.,  to  the  point  of  use,  together  with  all 
other  expenses  incident  to  such  work. 

Charge  to  "  Electric  Line  "  all  expenditures  for  repairs  and 
renewals  of  all  overhead,  underground,  or  any  other  electric  line 
on  whatever  part  of  the  property,  including  labor,  material, 
tools,  etc.,  used  in  taking  up,  resetting,  or  repainting  poles;  taking 
down  trolley,  feed,  or  other  electric  lines  and  installing  new  lines; 
repairing  and  renewals  of  conduits  for  wires;  repairing  and  re- 
placing bond  wires;  punching  and  drilling  rails  for  trackwiring; 
removing  and  relaying  pavements,  ballast,  etc.,  when  necessary 
for  repairs  and  renewals  on  electric  lines,  together  with  freight, 
hauling,  and  distribution  of  the  material  and  supplies  and  all 
other  expenses  incident  to  such  work. 

Charge  to  "  Buildings  and  Fixtures  "  all  expenditures  for  repair 
and  renewals  of  buildings  and  fixtures  used  in  the  operation  of 
the  road,  including  labor,  material,  tools,  hauling,  and  all  other 
expenses  incident  to  such  work. 

Charge  to  "  Steam  Plant  "  all  expenditures  for  repairs  and  re- 
newals of  machinery  and  fixtures  of  the  steam  or  water  power 
plant,  including  labor,  material,  tools,  freight,  hauling,  and  all 
other  expenses  incident  to  such  work. 

Charge  to  "  Electric  Plant  "  all  expenditures  for  repairs  and 
renewals  of  the  machinery  and  fixtures  of  the  electric  plant,  in- 
cluding labor,  material,  tools,  freight,  hauling  and  all  other  expenses 
incident  to  such  work. 

Charge  to  "  Cars  "  all  expenditures  for  repairs  and  renewals  of 
passenger,  baggage,  express,  freight,  mail,  and  other  cars  from 


150  Corporation  Accounting  and  Management. 

the  operation  of  which  revenue  is  derived,  including  labor,  material, 
tools,  freight,  hauling,  and  all  other  expenses  incident  to  such  work. 

Charge  to  "  Electric  Equipment  of  Cars  "  all  expenditures  for 
repairs  and  renewals  of  the  electric  equipment  and  wiring  of  cars, 
including  labor,  material,  tools,  freight,  hauling,  and  all  other 
expenses  incident  to  such  work. 

Charge  to  "  Miscellaneous  Equipment "  all  expenditures  for 
repairs  and  renewals  of  water  cars,  sprinkling  cars,  sand  cars, 
salt  cars,  supply  cars,  snow  plows,  sweepers,  scrapers,  miscella- 
neous snow  equipment,  and  all  other  vehicles  or  wagons  not  oper- 
ated for  the  purpose  of  revenue,  including  labor,  material,  tools, 
freight,  hauling,  and  all  other  expenses  incident  to  such  work. 

Charge  to  "  Shop  Expenses  "  all  expenditures  for  repairs  and 
renewals  of  shop  tools,  machinery,  and  appliances  of  every  nature 
used  on  repair  work,  including  labor,  tools,  fuel,  lubricants,  waste, 
together  with  freight  and  hauling  of  same ;  all  wages  of  the  general 
employees  engaged  in  the  repair  shop,  and  all  other  expenses  inci- 
dent to  such  work. 

Account  (E). 

To  include  all  charges  for  the  operation  of  power  plant  and 
operation  of  cars. 

Operation  of  Power  Plant  subdivided  into  classes:  Power  Plant 
Wages;  Fuel  for  Power;  Water  for  Power;  Lubricants  and  Waste 
for  Power  Plant;  Miscellaneous  Supplies  and  Expenses  for  Power 
Plant;  Hired  Power. 

Operation  of  Cars  subdivided  into  classes:  Superintendence  of 
Transportation;  Wages  of  Conductors;  Wages  of  Motormen; 
Wages  Miscellaneous  Car  Service  Employees;  Wages  Car  House 
Employees;  Car  Service  Supplies;  Miscellaneous  Car  Service 
Expenses;  Hired  Equipment;  Cleaning  and  Sanding  Tracks; 
Removal  of  Snow  and  Ice. 

Charge  to  "  Power  Plant  Wages  "  all  expenditure  for  labor  in 
the  power  plant,  excluding  only  labor  in  making  repairs  or 
renewals. 

Charge  to  "  Fuel  for  Power  "  all  expenditures  for  coal,  oil,  or 
gas  used  as  fuel,  or  any  other  fuel,  including  freight  and  handling. 

Charge  to  "  Water  for  Power  "  all  expenditures  for  water  used 
to  produce  steam  or  to  operate  the  power  plant. 


Electric  Railways.  15J. 

Charge  to  "  Lubricants  and  Waste  for  Power  Plant  "  all  expendi- 
tures for  lubricants,  such  as  oil,  grease,  waste,  rags,  etc. 

Charge  to  "  Miscellaneous  Supplies  and  Expenses  for  Power 
Plant  "  all  expenditures  for  operation  of  power  plant  not  hereto- 
fore enumerated. 

Charge  to  "  Hired  Power  "  all  expenditures  for  power  purchased 
of  other  parties. 

Charge  to  "  Superintendence  of  Transportation  "  all  wages  of 
superintendents,  assistants  and  aids,  road  officers,  inspectors,  and 
other  employees  superintending  transportation. 

Charge  to  "  Wages  of  Conductors  "  all  wages  of  conductors 
engaged  in  operating  cars  for  revenue  purposes. 

Charge  to  "  Wages  of  Motormen  "  all  wages  of  motormen  en- 
gaged in  operating  cars  for  revenue  purposes. 

Charge  to  "  Wages  of  Miscellaneous  Car  Service  Employees  " 
all  wages  of  starters,  transfer  agents,  switch  tenders,  trolley  men, 
and  other  car  service  employees. 

Charge  to  "  Wages  of  Car  House  Employees  "  all  wages  of  car 
house  foremen,  watchmen,  car  placers,  car  switchers,  car  and 
motor  inspectors,  car  cleaners,  car  oilers,  and  other  car  house 
employees  not  engaged  in  making  repairs  or  renewals. 

Charge  to  "  Car  Service  Supplies  "  all  expenditures  for  lubri- 
cants and  waste  for  cars,  and  electric  equipment  of  cars  in  connec- 
tion with  the  lamps,  oil,  and  supplies  for  lighting  cars,  water  and 
other  supplies  for  cleaning  cars,  fuel  for  heating  cars,  bell  and 
register  cord,  trolley  rope,  and  all  other  material  and  supplies, 
excepting  only  those  used  for  repairs  and  renewals  of  cars  or 
electric  equipment  of  cars. 

Charge  to  "  Miscellaneous  Car  Service  Expenses  "  all  expendi- 
tures for  transfers  and  tickets,  conductors7  books,  punches,  port- 
able registers;  tools  for  motormen;  employees'  badges  and  uniforms; 
cost  of  getting  derailed  cars  on  track  and  removing  obstructions 
and  wreckage ;  miscellaneous  expenses  of  car  house,  including  fuel, 
light,  water  (excepting  water  used  in  cleaning  cars),  and  all  other 
car  service  expenses  not  otherwise  provided  for. 

Charge  to  "  Hired  Equipment  "  all  expenditures  for  rental  of 
cars,  electric  equipment  of  cars,  and  other  equipment. 

Charge  to  "  Cleaning  and  Sanding  Track  "  all  expenditures  for 
cleaning,  greasing,  watering,  sprinkling,  and  removing  dirt  from 


152  Corporation  Accounting  and  Management. 

track;  sanding  track,  including  wages  of  men  engaged  in  the 
work;  cost  of  sand,  and  hauling  and  distributing  same;  cost  of 
track  brooms  and  other  tools;  curve  grease  and  water  for  sprink- 
ling and  watering  track,  and  all  other  supplies  and  expenses 
incident  to  such  work. 

Charge  to  "  Removal  of  Snow  and  Ice  "  all  expenditures  for  labor, 
material,  tools,  and  expenses;  cost  of  salt  and  delivery  of  same  in 
the  car  house;  and  the  wages  of  men  engaged  in  salting  tracks 
and  operating  snow  plows,  sweepers,  scrapers,  etc. 

Account  (F). 

General,  subdivided  into  classes:  Salaries  of  General  Officers; 
Salaries  of  Clerks;  Printing  and  Stationery;  Miscellaneous  Office 
Expenses;  Stores  Expense;  Stable  Expense;  Advertising  and 
Attractions;  Miscellaneous  General  Expenses;  Damages;  Legal 
Expenses  in  connection  with  Damages;  Miscellaneous  Legal 
Expenses;  Rent  of  Land  and  Buildings;  Rent  of  Tracks  and 
Terminals,  and  Insurance. 

Charge  to  "  Salaries  of  General  Officers  "  all  salaries  of  presi- 
dent, vice-president,  secretary,  treasurer,  auditor,  general  manager, 
assistant  general  manager,  chief  engineer,  general  superintendent, 
purchasing  agent,  and  all  other  executive  and  administrative 
officers  whose  duties  extend  over  the  entire  system. 

Charge  to  "  Salaries  of  Clerks  "  the  salaries  of  bookkeepers, 
cashiers,  receivers,  paymasters,  stenographers,  and  all  other 
clerks  employed  on  the  entire  system  not  otherwise  provided  for. 

Charge  to  "  Printing  and  Stationery  "  all  expenditures  for  print- 
ing, stationery,  and  stationery  supplies  not  otherwise  provided  for. 

Charge  to  "  Miscellaneous  Office  Expenses "  the  cost  of  all 
office  supplies,  repairs  and  renewals  of  office  furniture,  wages  of 
janitors,  porters,  messengers,  and  all  other  office  expenses  not 
otherwise  provided  for. 

Charge  to  "  Stores  Expense "  all  salaries  and  expenses  in 
connection  with  storerooms,  including  cost  of  sending  material 
and  supplies  from  general  store  room  to  branch  store  rooms,  and 
the  collecting  of  scrap  material. 

Charge  to  "  Stable  Expense  "  the  cost  of  feed,  keep,  and  shoeing 
of  horses  and  all  other  stable  expenses. 


Electric  Railways.  153 

Charge  to  "  Advertising  and  Attractions  "  the  cost  of  adver- 
tising of  every  description,  including  printing  handbills,  posters, 
etc. :  net  expenses  of  music,  parks,  park  properties  and  resorts,  etc. 

Charge  to  "  Miscellaneous  General  Expense  "  all  expenses  of 
public  telephone  system;  maintaining  and  operating  private 
telephones,  telegrams,  subscriptions  and  donations;  traveling 
expenses  of  general  officers  and  others  connected  with  the  main 
office,  and  contingent  expenses  connected  with  the  management 
not  otherwise  provided  for. 

Charge  to  "  Damages  "  all  expenses  on  account  of  property 
damage  and  persons  killed  or  injured;  salaries  and  expenses  of 
claim  agents,  investigators,  adjusters,  and  others  engaged  in  the 
investigation  of  accidents  and  adjustment  of  claims;  salaries, 
fees,  and  expenses  of  surgeons,  doctors,  nurses,  hospital  attend- 
ants, medical  and  surgical  supplies,  fees  and  expenses  of  coroners 
and  undertakers;  fees  of  witnesses  and  others,  excepting  only 
lawyers'  fees  and  court  costs  and  expenses. 

Charge  to  "  Legal  Expenses  in  Connection  with  Damages  "  all 
legal  expenses  incurred  in  connection  with  the  defense  or  settle- 
ment of  damage  claims. 

Charge  to  "  Miscellaneous  Legal  Expenses  "  all  legal  expenses 
except  those  incurred  in  connection  with  damages. 

Charge  to  "  Rent  of  Land  and  Buildings  "  all  rent  for  lands  and 
buildings  used  in  the  operation  of  the  road. 

Charge  to  "  Rent  of  Tracks  and  Terminals  "  all  rent  paid  for 
tracks  or  terminals  of  other  roads,  bridge  rentals,  and  tolls. 

Charge  to  "  Insurance  "  the  cost  of  fire  and  boiler  insurance. 

FIXED  CHARGES. 

(G)    Interest  and  Discount. 

(H)  Taxes. 

(I)    Rent  of  Leased  Lines. 

Account  (G). 

Charge  to  "  Interest  and  Discount  "  all  interest  charges  on 
funded  debt,  real  estate  mortgages,  floating  debt,  and  discount  on 
notes,*  excepting  interest  or  discount  on  notes  the  proceeds  of 
which  are  applied  to  construction  items. 

*  See  note  under  Water  Works  Classification. 


154  Corporation  Accounting  and  Management. 

Account  (H). 

Charge  to  "  Taxes  "  all  taxes  on  real  estate  and  personal  prop- 
erty, track,  franchise,  upon  capital  stock,  gross  earnings;  car 
and  other  vehicle  licenses,*  excepting  only  taxes  on  property 
purchased  as  an  investment,  foreign  to  the  operation  of  the  road. 

Account  (I). 

Charge  to  "  Rent  of  Leased  Lines  "  all  charges  for  rent  of  leased 
lines  and  terminals. 


CONSTRUCTION. 

(J)  Construction. 

Account  (J). 

To  include  all  charges  for  construction,  improvements,  and 
betterment  of  the  property. 

Construction  subdivided  into  classes:  Organization;  Engineer- 
ing and  Superintendence;  Right  of  Way;  Track  and  Roadway 
Construction;  Electric  Line  Construction;  Real  Estate  Used  in 
Operation  of  Road;  Buildings  and  Fixtures  Used  in  Operation  of 
Road;  Investment  Real  Estate;  Power  Plant  Equipment;  Shop 
Tools  and  Machinery;  Cars;  Electric  Equipment  of  Cars;  Mis- 
cellaneous Equipment;  Interest  and  Discount;  Miscellaneous. 

Charge  to  "  Organization  "  all  expenses  incurred  in  effecting 
organization,  including  therein  legal  expenses. 

Charge  to  "  Engineering  and  Superintendence  "  all  expenditures 
for  surveys  by  engineers,  .transit-men,  and  superintendence  on 
preliminary  and  construction  work,  and  all  expenses  incident  to 
such  work. 

Charge  to  "  Right  of  Way  "  all  expenses  incurred  in  securing 
right  of  way  and  payments  therefor,  including  the  cost  of  the 
necessary  real  estate. 

Charge  to  "  Track  and  Roadway  Construction  "  all  expenditures 
for  track  and  roadway  construction,  including  superintendence, 
labor,  material,  tools,  freight,  hauling  and  distribution  of  material, 
and  all  other  expenses  incident  to  such  work,  together  with  the 

*See  note  under  Water  Works  Classification. 


Electric  Railways.  155 

cost  of  excavating,  grading,  tracklaying,  ties,  yokes,  rails,  man- 
hole frames  and  covers,  ballasting,  pavement,  bridges,  trestles, 
culverts,  tunnels,  etc. 

Charge  to  "  Electric  Line  Construction  "  all  expenditures  for 
overhead,  underground,  or  other  electric  line  construction,  includ- 
ing superintendence,  labor,  material,  tools,  freight,  hauling  and 
distribution  of  the  material,  and  all  other  expenses  incident  to 
such  work;  cost  of  punching  and  drilling  rails  for  track  wiring, 
rail  bonds,  poles,  labor,  and  material  for  setting  and  painting 
poles;  feed,  guard,  span,  trolley,  and  other  wires;  feeders  and  all 
other  appurtenances  and  fixtures  necessary  therefor,  together 
with  cost  of  all  labor  in  erecting  same ;  conduits  and  conduit  wires 
for  underground  construction,  including  conductors,  insulators, 
sewer  connections,  etc. 

Charge  to  "  Real  Estate  Used  in  Operation  of  Road  "  all  expendi- 
tures for  real  estate  used  in  operation  of  road,  except  real  estate 
used  for  right  of  way. 

Charge  to  "  Buildings  and  Fixtures  Used  in  Operation  of  Road  " 
all  expenditures  for  buildings  and  fixtures  used  in  operation  of 
road,  including  superintendence,  labor,  material,  tools,  freight, 
hauling  and  distribution  of  material,  and  all  other  expenses  inci- 
dent to  such  work. 

Charge  to  "  Investment  Real  Estate  "  all  expenditures  for  land 
and  buildings  not  used  in  operation  of  road. 

Charge  to  "  Power  Plant  Equipment "  all  expenditures  for 
steam  and  electric  equipment  of  power  plant,  including  founda- 
tions and  installation. 

Charge  to  "  Shop  Tools  and  Machinery  "  all  expenditures  for 
shop  tools  and  machinery  for  general  repair  shops,  car  houses,  etc., 
including  foundations  and  installations. 

Charge  to  "  Cars "  all  expenditures  for  passenger,  baggage, 
express,  freight,  mail  and  other  cars  from  the  operation  of  which 
revenue  is  derived. 

Charge  to  "Electric  Equipment  of  Cars"  all  expenditures  for 
electric  equipment  and  work  of  all  cars,  whether  revenue  or  work 
cars,  including  labor,  material,  tools,  freight,  hauling  of  material, 
and  all  other  expenses  incident  to  such  work. 

Charge  to  "  Miscellaneous  Equipment  "  all  expenditures  for 
water  cars,  sprinkling  cars,  sand  cars,  salt  cars,  supply  and  other 


156  Corporation  Accounting  and  Management. 

works  cars,  snow  plows,  sweepers,  scrapers,  and  miscellaneous 
snow  equipment;  horses,  wagons,  vehicles,  tools  and  appliances 
necessary  in  the  use  of  work  cars  or  snow  equipment. 

Charge  to  "  Interest  and  Discount  "  all  interest  paid  or  received 
in  connection  with  construction  funds;  and  all  discount  or  premi- 
ums resulting  from  the  sale  of  securities  for  construction  should 
be  charged  or  credited  as  the  case  appears  to  this  account. 

Charge  to  "  Miscellaneous  "  all  expenditures  for  printing  and 
stationery,  office  supplies  and  expenses,  damage  claims,  wages  of 
clerks  and  all  other  expenses  incident  to  construction  not  other- 
wise provided  for. 


Electric  Railways.  157 

(Form  Z)  INCOME  ACCOUNT  FOR  YEAR  ENDING 190     . 

Gross  earnings  from  operation  (per  statement  attached) ,  $ 

Operating  expenses  (     „  „  ), 


Net  earnings  from  operation,  .$ 

Miscellaneous  Income: 

Interest  on  deposits,  $ 

Income  from  securities  owned,  

Rent  of  leased  lines,  

Other  miscellaneous  income,  


$ 

Gross  income,  less  operating  expenses,  $. 

FIXED  CHARGES: 
Taxes,  - 

On  real  and  personal  property,          $ 

On  capital  stock,  

On  earnings,  

Miscellaneous,  

$ 

Interest,  — 


On  bonded  debt,  $. 

On  real  estate  mortgages, 
On  floating  debt, 


Rent  of  leased  lines,  

Other  deductions,  

$ 

Net  income  for  year,  $ . 


158 


Corporation  Accounting  and  Management. 
AUXILIARY   BOOKS. 


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162  Corporation  Accounting  and  Management. 

In  large  companies  the  construction  record  book  may  be  sub- 
divided into  departments,  and  each  department  superintendent 
furnished  with  the  construction  records  pertaining  to  his  depart- 
ment, so  that  he  will  have  all  the  details  pertaining  thereto  in  an 
emergency. 


(F)    Operation  Book,  Power  Station. 

This  book  is  arranged  in  a  columnar  manner,  with  columns 
for  date,  hours  running,  condensing,  non-condensing,  machinery 
in  use;  subdivided  into  engines,  boilers,  dynamos,  etc.;  coal  used, 
kind  and  number  of  tons ;  maximum  horse-power,  minimum  horse- 
power, average  horse-power,  current  output,  etc.,  and  column  for 
remarks,  under  which  can  be  entered  the  weather  conditions, 
extra  labor  employed,  etc. 

For  a  small  railway,  the  record  books  enumerated  above,  viz., 
construction  record  book,  equipment  book  —  rolling  stock,  equip- 
ment book  —  power  station,  and  real  estate  book  can  be  incor- 
porated in  one  book,  allowing  the  greater  part  of  the  pages 
to  poles,  copper  wiring,  feeders,  rails,  ties,  paving,  etc.,  as  these 
records  are  more  active,  due  to  the  extensions  of  the  system; 
while  the  other  records  are  more  of  a  fixed  character. 

If  further  information  of  the  character  of  the  fixed  structures  is 
desired,  such  as  turn-outs,  railway  crossings,  bridges  and  trestles, 
pipe  culverts,  cars,  machinery  and  apparatus  at  power  station, 
real  estate,  etc.,  one  third  of  the  pages  of  the  book  should  be  left 
blank,  whereon  diagrams  or  sketches  of  the  construction  and 
important  points  bearing  upon  same,  culled  from  the  original 
specifications  or  contracts  for  building  same,  could  be  entered, 
thus  having  immediate  access  to  this  data  when  occasion  requires, 
avoiding  the  necessity  of  hunting  up  the  original  contract  or  speci- 
fications which  may  have  been  misplaced  or  lost  in  the  files. 

Some  companies  keep  this  data  on  cards  in  connection  with  set 
of  plans  covering  the  entire  system. 


PART  IX. 

COMBINED  INSPECTION    AND  CUSTOMERS' 
REGISTERS. 


The  combined  inspection  and  customers'  registers  for  water, 
gas,  electric  light,  steam  heating,  and  telephone  companies  are 
the  most  important  books  of  original  entry,  excluding  only  the 
cash  book,  journal,  and  ledger. 

The  inspection  part  of  the  book  will  show  all  the  details  of  each 
customer's  service,  or  so  much  thereof  as  may  be  deemed  necessary; 
such  as, 

For  water  works:  Service  number,  name  of  customer,  fixtures 
in  use  (or  meter,  —  number,  size,  kind,  and  location),  purposes 
used,  date  connected,  date  disconnected,  etc. 

For  gas  and  electric  light  works:  If  method  of  accounting  is  by 
streets  or  routes,  —  street,  number,  name  of  customer,  meter  (num- 
ber, size,  kind,  and  location),  purposes  used,  date  connected,  date 
disconnected,  etc. 

For  steam  heating  works:  Street,  number,  name  of  customer, 
location,  purposes  used, feet  of  floor  surface,  date  con- 
nected, date  disconnected,  etc. 

For  telephone  companies:  Drop  number,  name  of  subscriber, 
location,  contract  classification,  subdivided  into  columns,  tele- 
phone, extension  bells,  extension  sets,  booths,  miscellaneous, 
date  connected,  date  disconnected. 

The  fi.nancial  part  of  the  book  is  arranged  in  a  columnar  manner, 
as  follows: 

For  water  works  (fixture  or  unmetered  register) :  Amount  due 
for  water,  service  pipes,  taps,  miscellaneous,  discount  or  abate- 
ments, amount  paid,  when  paid,  balance  due.  (Meter  register) : 
Reading,  cubic  feet;  difference,  cubic  feet;  rate;  amount  due;  dis- 
count or  abatement;  amount  paid;  when  paid;  balance  due. 

For  gas  works:  Meter  reading,  cubic  feet;  difference,  cubic  feet; 
rate:  amount  due;  discount  or  abatement;  amount  paid;  when 
paid;  balance  due. 


164  Corporation  Accounting  and  Management. 

For  electric  light  works :  Meter  reading,  K. W. ;  difference,  K.  W. ; 
rate;  amount  due;  discount  or  abatements;  amount  paid;  when 
paid;  balance  due. 

For  steam  heating  works:  Steam  heat,  steam  piping  and  fittings, 
miscellaneous,  abatements  or  discounts,  amount  paid,  when  paid, 
balance  due. 

For  telephone  companies:  Rentals,  tolls,  excess  calls,  miscel- 
laneous, abatements  or  discounts,  amount  paid,  when  paid,  bal- 
ance due. 

The  inspection  part  of  the  book  is  entered  only  once  during  the 
life  of  the  book,  which  can  be  made  to  run  for  any  number  of  years, 
preferably  five,  on  account  of  liability  to  soil  from  frequent  hand- 
ling. 

If  there  is  a  change  in  the  fixtures  or  name  of  customer,  such 
changes  can  be  entered  from  the  "  House-to-House  Inspection 
Book,"  "  On  and  Off  Book,"  or  "  In  and  Out  Book,"  or  from 
any  other  method  adopted  for  recording  the  changes,  the  last 
name  entered  running  horizontally,  being  the  present  or  latest 
customer  using  any  particular  service. 

By  this  method  you  will  have  at  all  times  a  complete  record  of 
each  service  connected  with  the  system  and  its  present  status, 
thereby  obviating  the  necessity  of  referring  to  other  books  of 
account  or  card  memoranda  when  any  question  arises. 

It  also  affords  comparisons  of  use  by  customers  with  the  corre- 
sponding periods  of  the  previous  years,  and  avoids  the  necessity 
of  opening  new  registers  every  year  or  thereabouts. 

The  financial  part  of  the  book  is  self-balancing,  the  total  amount 
of  all  bills  rendered  equaling  the  totals  of  the  columns,  —  discount 
or  abatements,  amount  paid,  and  balance  due. 

When  bills  are  rendered  monthly  to  customers,  a  short  leaf  is 
inserted  in  the  book,  printed  on  both  sides. 

Totals  of  sheets  are  entered  on  a  summary  sheet. 

When  payments  are  made,  the  respective  customers'  accounts 
are  credited  in  these  books,  and  the  totals  of  the  columns  of  col- 
lector's or  treasurer's  reports  are  debited  to  cash  and  credited 
to  their  respective  accounts  in  the  main  ledger. 

If  the  accounts  are  kept  by  the  controlling  method,  cash  is 
debited  and  customer's  account  is  credited  in  the  main  ledger, 


Inspection  and  Customers'  Registers.  165 

with  the  total  of  the  report.  (See  " Controlling  Method"  and 
"Accounts  Payable,  Vouchers  Payable,  or  Distribution  Book"; 
also  cash  ledger  form  O-2,  under  Part  III.) 

For  a  large  city  it  would  be  necessary  to  divide  the  city  into 
sections  or  wards,  allotting  books  to  such  sections  or  wards  in 
accordance  with  the  number  of  customers  and  possible  growth  of 
the  business,  thus  proportioning  the  books  and  work  of  accounting 
to  different  bookkeepers. 

For  large  companies,  the  columns  for  service  pipes  and  taps, 
steam  piping  and  fittings,  under  the  financial  headings  for  "  Water  " 
and  "  Steam  Heating  "  companies,  respectively,  could  be  elimi- 
nated, and  separate  registers  kept  for  these  accounts,  as  charges 
seldom  occur  after  the  first  installation,  and  then  only,  as  a  rule, 
for  repairs  or  renewals. 


166 


Corporation  Accounting  and  Management. 


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168  Corporation  Accounting  and  Management. 

LOOSE-LEAF  CUSTOMERS'  REGISTERS. 

Loose-leaf  registers  are  used  by  some  of  the  larger  corporations, 
their  principal  recommendation  being  that  additional  growth,  also 
new  customers,  along  the  present  streets  or  routes  can  be  provided 
for  in  numerical  order. 

They  run  by  months,  but  seldom  for  a  period  longer  than  six 
months,  at  which  time  the  leaves  are  renewed  in  the  binders,  the 
old  leaves  being  transferred  to  the  files. 

The  mechanism,  —  binders,  or  locks  (of  which  there  are  several 
patents), —  by  which  the  sheets  are  held  in  place  in  the  covers,  have 
not  yet  reached  that  stage  of  perfection  to  insure  the  leaves  from 
loosening,  even  when  apparently  securely  locked  in. 


Inspection  and  Customers'  Registers. 


169 


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170  Corporation  Accounting  and  Management. 

CARD  REGISTERS. 

By  this  method  cards  are  arranged  in  boxes,  running  numeri- 
cally or  by  streets  or  routes,  each  customer  being  allotted  one 
card.  When  entries  are  to  be  made  thereon,  it  necessitates  hand- 
ling the  box,  finding  the  card,  extracting  same,  making  the  entry, 
blotting  same  and  returning  it  to  its  proper  location  in  the  box. 

When  monthly  totals  are  to  be  taken  off,  the  amount  charged 
to  each  customer  on  his  card  must  either  be  rewritten  on  a  separate 
piece  of  paper,  or  else  called  off  to  an  operator  of  an  adding  machine. 
The  number  of  handlings  of  the  accounts  increases  proportionately 
the  liability  of  errors,  and  it  is  seldom  a  balance  is  struck  on  the 
first  trial.  They  are  not  self-balancing  and  rarely  approved  by 
auditors  for  this  class  of  accounting. 

The  misplacement  or  loss  of  a  card  throws  the  whole  accounting 
system  out  of  balance,  which  cannot  be  rectified  until  the  card 
is  found,  or  by  reference  again  to  the  original  data  from  which 
the  particular  customer's  account  was  made  up. 

The  first  cost  of  the  fixtures  and  furniture  necessary  for  the 
installation  of  a  card  system  is  considered  very  excessive,  not 
taking  the  amount  of  floor  space  occupied  into  consideration. 
The  greatest  objection  to  it,  from  the  cost  standpoint,  is  the  time 
consumed  and  force  necessary  to  operate  it,  which  is  about  in 
the  proportion  of  12  to  1  with  the  other  methods,  some  account- 
ants placing  it  at  20  to  1. 

This  method  of  accounting  still  finds  favor  with  a  few  corpora- 
tions. Several  large  corporations  who  installed  it  have  dis- 
carded same  and  are  now  either  on  the  bound-book  or  loose-leaf 
system. 


PART  X. 

PURCHASING  DEPARTMENT. 


PURCHASING  AGENT. 

All  purchases  of  whatever  nature  should  be  made  through  the 
purchasing  agent,  or  other  duly  authorized  officer,  who  should  be 
held  responsible  for  all  supplies  on  hand  and  received,  and  the 
proper  distribution  thereof  to  the  respective  departments  of  the 
company  on  properly  attested  requests  or  orders  from  the  heads 
of  the  departments. 

(Form  R) 

(Division  or  Department  Order  on  Purchasing  Agent.) 

BOSTON,  MASS., 190  . 

Order  No 

Department 

CONSUMER'S   WATER  COMPANY. 

To  the  Purchasing  Agent : 

Please  order  the  following  supplies  for  the  Company: 

Quantity  Articles. 


(Signature) 
Approved : 

Head  of  Department. 


The  above  can  be  made  up  either  in  bound-book  or  on  block 
form,  manifolded,  so  that  the  department  head  will  always  have 
at  his  command  a  duplicate  of  the  orders  which  he  has  forwarded 
to  the  purchasing  agent,  also  for  checking  the  arrival  of  the  goods. 


172  Corporation  Accounting  and  Management. 

The  head  of  a  department  should  have  a  couple  of  rubber  stamps 
made,  one  to  indicate  that  the  goods  were  received  in  a  good  condi- 
tion on  date,  the  other  per  contra,  goods 

received  (lacking  items  checked  or  in  bad  condition)  on 

date,  signed  by  department  head,  per 

On  receipt  of  the  goods  an  impression  of  trie  proper  stamp  should 
be  made  on  the  duplicate  order  which  he  retains,  so  that  he  can 
0.  K.  or  check  the  original  invoice  when  it  is  received  from  the 
purchasing  agent. 

The  purchasing  agent  on  receiving  the  department  order  (Form 
R)  makes  an  impression  on  same  with  a  rubber  or  other  stamp, 
showing  the  date  and  time  received,  and  later  (after  ordering  the 
supplies)  enters  the  number  of  the  requisition  order  thereon. 


(Form  S) 

(Requisition  Order.) 

CONSUMER'S  WATER  COMPANY. 

BOSTON,  MASS., 190 

Requisition 

No 

Messrs.  . 


Please  ship  to  us  at 
via . . 


CONSUMER'S  WATER  COMPANY, 

By 

Purchasing  Agent. 


Purchasing  Department.  173 

The  above  can  be  made  up  either  in  bound-book  or  on  block 
form,  manifolded  either  in  duplicate  or  triplicate,  as  the  parties 
desire,  the  original  to  be  sent  to  the  vendor  and  the  duplicate  to 
be  retained  by  the  purchasing  agent,  to  be  held  by  him  pending 
the  arrival  of  the  invoice  and  the  goods. 

Should  the  requisition  order  be  made  in  triplicate,  the  third  one 
should  be  sent  to  the  head  of  the  respective  department  for  which 
the  supplies  were  ordered,  or  to  the  storekeeper,  depending  on  the 
method  of  accounting  adopted. 

On  the  carbons  or  duplicates  of  the  requisition  order  there  is 
printed  in  the  lower  left-hand  corner: 

Invoice  forwarded 

To 


Head  of  Department. 


INVOICES. 


On  receipt  of  the  invoice,  the  purchasing  agent  compares  and 
checks  same  with  the  copy  of  the  original  requisition  order  and 
stamps  same  with  a  special  stamp,  having  printed  thereon:  Date 
goods  received,  condition,  approval  of  head  of  department,  ap- 
proved, purchasing  agent,  and  forwards  same  to  the  department 
head,  who  compares  and  checks  same  with  his  original  order  and 
record  of  goods  received,  and  if  found  correct,  approves  same  on 
the  lines  allotted  for  his  entries  and  signature,  and  returns  it  to  the 
purchasing  agent,  who  also  approves  and  forwards  same  to  the 
accounting  department  for  entry  to  the  credit  of  the  vendor's 
account. 

The  invoice  will  then  show  on  its  face  all  the  details  of  verifica- 
tion and  approval. 

If  the  supplies  have  been  ordered  for  stock,  the  invoice  is  stamped 
with  a  rubber  or  other  stamp  made  for  that  particular  purpose  and 
sent  to  the  storekeeper,  who  checks  the  items  thereon  with  his 
record  of  goods  received,  and,  if  found  correct,  approves  same  on 
the  lines  allotted  for  his  entries  and  signature  and  then  forwards 
it  to  the  purchasing  agent,  who  in  turn  approves  same  and  for- 
wards it  to  the  accounting  department  for  entry  and  credit  to  the 
vendor's  account. 


174  Corporation  Accounting  and  Management. 

DEPARTMENT  ORDER. 

In  case  each  department  orders  its  own  supplies,  the  following 
form  is  recommended: 

(Form  R-l) 

CONSUMER'S   GAS   COMPANY. 
Department. 


Order  No. 
(Red  ink.) 


BOSTON,  MASS.,   190 

M.. 


Please  send  to , 


and  charge  same  to  our  account. 

Head  of  Department. 

Enter  the  number  of  this  Order 
on  your  bill;  otherwise  it  will  be 
returned.  (Red  ink.) 

In  order  to  expedite  business,  each  department  should  be 
allotted  certain  numbers,  for  example,  - 

Manufacturing  Department,  Nos.  1  to    4,999,  inclusive. 

Construction  „  „       5,000  „     9,999, 

Executive  „  „     10,000  „  14,999, 

The  order  blanks  could  be  arranged  in  bound  book,  manifolded; 
on  loose  leaves,  manifolded,  or  in  bound  book  with  stub  attach- 
ments. 


PART  XI. 

SALES  DEPARTMENT. 


SOLICITORS. 

This  department  should  have  a  polite  and  diplomatic  corps,  of 
good  address,  thoroughly  conversant  with  the  business,  to  develop 
same  amongst  the  old  customers  and  to  secure  new  ones,  especially 
along  the  lines  of  the  present  constructed  plant.  They  would  be 
a  valuable  corps  to  canvass  new  territory  before  extending  the 
system,  to  determine  whether  the  immediate  or  possible  customers 
would  warrant  the  expenditure  of  the  funds  necessary  for  the  new 
construction. 


CREDITS,  COLLECTIONS,  AND  CLAIMS. 

On  general  principles,  parties  who  own  their  houses  on  making 
application  or  contract  for  the  installation  of  a  service  should  be 
allowed  credit,  and  only  parties  of  whose  credit  there  was  doubt 
should  be  required  to  make  a  deposit,  the  assumption  being  that 
they  would  not  apply  for  the  service  unless  they  actually  desired 
it  and  intended  to  pay  for  same. 

A  continuous  deposit  left  in  the  hands  of  a  company  to  insure 
them  from  possibility  of  loss,  or  bad  bills,  injures  the  company 
with  its  patrons  and  the  general  public.  The  better  and  safer 
method  is  to  render  bills  for  shorter  periods  to  customers  whose 
credit  is  doubtful. 

The  fixing  of  a  date  when  all  bills  are  payable  under  the  penalty 
of  having  the  service  shut  off,  and  the  rigid  and  diplomatic  en- 
forcement of  this  rule  (unless  the  bill  is  in  dispute)  reduces  to  a 
minimum  the  amount  of  bad  bills,  as  the  customers  then  arrange 
to  meet  their  bills  promptly. 

Another  method  is  the  allowance  of  a  discount  for  payment 
prior  to  a  fixed  date,  which  as  a  rule  customers  take  advantage  of. 
The  treasurer  can  then  always  approximate  the  amount  of  funds 


176  Corporation  Accounting  and  Management. 

he  will  have  on  hand  to  meet  the  demands  on  the  company,  thus 
avoiding  the  necessity  of  making  temporary  loans  to  tide  over 
periods  when  fixed  charges  and  other  pressing  demands  must  be 
met. 

When  there  are  claims  for  allowances  or  rebates  due  from  any 
cause,  if  against  the  company,  they  should  be  allowed  in  a  cheerful 
spirit  with  due  apologies,  and  if  there  be  any  doubt  the  customer 
should  receive  the  benefit. 


COMPLAINTS. 

All  complaints  made  either  verbally  or  by  letter  should  receive 
prompt  and  courteous  attention-,  and  same  be  referred  to  the  head 
of  the  department,  according  to  the  nature  of  the  complaint,  who 
should  despatch  a  representative  at  the  earliest  opportunity  to 
adjust  same. 


FIXTURES. 

A  large  room  should  be  secured  on  the  ground  floor  and  adjoin- 
ing the  office,  if  possible,  where  all  the  appliances  and  fixtures  for 
gas  and  electric  light  business  could  be  shown  to  advantage.  The 
greater  part  of  these  appliances  should  be  connected  up  with 
the  system  so  that  a  possible  customer  could  see  at  a  glance  the 
method  of  operation  and  effects  of  same,  which  would  not  require 
unnecessary  explanations. 

All  of  the  aforesaid  departments  should  W7ork  in  harmony  with 
each  other,  and  unless  the  company  was  a  large  one,  these  depart- 
ments should  be  consolidated  under  one  head. 


PART  XII. 

ENGINEERING  DEPARTMENT. 


PLANS. 

All  companies  should  have  at  least  one  large  set  of  plans,  platted 
on  mounted  cloth,  on  a  scale  of  one  hundred  feet  to  the  inch, 
showing  all  the  details  of  construction  pertaining  to  the  whole 
system,  the  initial  sheet  having  printed  or  lettered  thereon  an 
index  of  the  references.  All  extensions  of  the  system  should  be 
plotted  thereon  at  least  once  a  year.  When  not  in  use  they  should 
be  stored  in  a  fireproof  vault  or  safe,  as  it  would  entail  consid- 
erable trouble  and  large  expense  to  make  a  duplicate  set  in  case  of 
loss. 

For  active  use  it  would  be  advisable  to  have  a  set  of  tracings 
made,  from  which  blue-prints  could  be  made  for  any  number  of 
working  sets  desired. 

METAL   PLAN   CASE. 

This  plan  case  should  have  a  large  number  of  drawers  of  suffi- 
cient dimensions  to  hold  any  detail  plans  that  might  be  necessary, 
each  drawer  being  either  numbered  or  lettered  on  the  outside. 
All  plans,  tracings,  or  blue-prints  should  be  stamped  with  some 
designating  number  or  letter.  A  card  index  is  a  valuable  adjunct 
in  connection  with  the  plan  case. 

EXTENSIONS   AND   ADDITIONS   OF   THE   SYSTEM. 

Drawings  or  plans  showing  all  the  details  of  the  new  construc- 
tion or  extensions  of  the  system  should  be  rendered  weekly  or 
monthly,  as  the  occasion  demands,  either  by  the  engineer  or  fore- 
man in  charge  of  the  work,  but  preferably  by  the  engineer,  duly 
signed  by  him,  and  same  platted  on  the  original,  set  of  plans  and 
tracings;  also  entered  in  the  construction  record  book,  under  the 
month  or  year  under  which  said  work  was  done,  thus  keeping  up 
the  construction  records,  so  that  at  the  end  of  any  fiscal  or  calendar 
year,  according  to  the  method  employed,  said  book  can  be  balanced. 


PART  XIII. 

CHEMICAL  AND  TESTING  DEPARTMENT. 


For  large  corporations  it  would  be  economical  to  install  a  labora- 
tory and  have  a  sufficient  chemical  force  to  test  materials  and 
supplies,  such  as  ascertaining  the  steam-producing  qualities  of 
coal;  relative  percentage  of  mineral  and  vegetable  oil  contained 
in  oil  for  lubricating  purposes;  hardness  of  water  and  minerals 
contained  therein,  to  determine  its  value  for  boiler  uses;  if  for 
drinking  purposes  and  delivered  through  lead  pipes,  whether  the 
lead  was  in  solution;  whether  contaminated  by  sewage  or  other 
impurities,  thus  forestalling  suits  for  damages;  component  parts 
of  paint  to  determine  its  probable  length  of  wear;  tensile  strengths 
of  cement  for  use  on  various  parts  of  construction,  etc. 

Records  could  also  be  kept  by  this  department  showing  the  dates 
and  kind  of  materials  and  supplies  purchased;  amounts,  prices, 
periods  required  for  consumption;  details  of  the  analyses,  tests, 
etc.,  which  would  materially  assist  the  purchasing  department  in 
requiring  certain  standards  when  placing  orders  for  such  materials 
in  the  future. 


PART  XIV. 

AUDITS  AND  EXAMINATIONS. 


Periodical  audits  and  examinations  should  be  made  by  a  dis- 
interested party  who  is  thoroughly  conversant  in  the  science  of 
accounting,  and  by  one  whose  vision  is  broad  enough  to  analyze 
and  make  rough  deductions.  He  should  not  alone  be  competent 
to  check  and  verify  the  receipts  and  disbursements,  either  by  note, 
voucher,  or  check,  but  should  also  be  able  to  state  whether  such 
items  have  been  appropriated  to  their  proper  accounts.  In  other 
words,  whether  the  receipts  have  been  applied  to  their  respective 
accounts,  such  as  revenue,  notes,  mortgages  issued,  etc.:  and  the 
disbursements,  to  an  expense  account  of  running  the  business; 
or  a  capital  account,  —  enlargement  of  the  plant  or  reducing  the 
liabilities. 

He  should  be  given  access  to  all  contracts  and  other  data, 
the  accounting  for  which  at  times  does  not  appear  in  detail  on  the 
books. 

Should  the  examination  be  made  with  reference  to  the  purchase 
of  a  plant  by  other  parties,  this  wrould  necessitate  not  only  a 
thorough  examination  of  the  account  books,  vouchers,  etc.,  for 
a  period  of  years,  but  also  of  the  act  of  incorporation,  votes  of 
stockholders  and  directors  pertaining  to  the  issue  of  mortgage 
bonds,  stocks,  or  other  securities,  dividends,  leases,  contracts,  etc. 

The  examiner  should  also  secure  a  certificate  from  the  trustee 
for  the  bondholders  of  the  number  of  bonds  still  outstanding, 
together  with  the  coupons  remaining  unpaid,  with  the  dates, 
numbers,  and  other  details  of  same,  so  that  he  can  verify  and 
make  comparisons  with  the  canceled  bonds  and  coupons  in  the 
treasury  of  the  company  and  check  the  figures  representing  same 
on  the  books. 

In  addition  to  the  above,  a  general  examination  of  the  city 
should  be  made,  covering  the  city's  population,  giving  the  United 
States  census  returns  for  the  preceding  thirty  years,  or  more  if 
deemed  necessary;  present  estimated  population;  last  state  or 
school  census;  composition  of  population;  city's  assessed  valua- 


180  Corporation  Accounting  and  Management. 

tion,  tax  rate,  bonded  debt;  principal  industries,  enumerated, 
giving  their  annual  output  in  quantity  and  dollars,  if  same  are 
obtainable;  steam  and  electric  railroads  entering  city  and  their 
connections;  water-ways,  steamboats,  and  other  lines;  territory 
tributary  thereto,  with  products,  industries, -and  valuation  thereof, 
together  with  any  other  information  which  may  be  of  value  to 
determine  the  present  or  future  prospects  and  growth  of  the 
community. 

There  should  also  be  incorporated  in  his  report  an  extended 
statement  of  the  physical  plant,  separating  same  into  units,  giving 
details  of  the  parts  of  each  unit,  together  with  the  condition  of  the 
plant  from  a  casual  examination,  adding  any  recommendations 
as  to  methods  of  maintenance,  operation,  management,  or  improve- 
ment of  the  plant  whereby  same  can  be  operated  more  economically. 

In  case  examination  is  made  for  valuation  purposes,  with  a 
view  to  purchase  of  the  property  by  a  city  or  town,  the  main 
questions  then  at  issue  are  earning  capacity,  franchise,  going  value, 
construction,  capacity,  physical  condition  of  the  property,  etc. 
Valuation  cases  are  generally  heard  before  a  commission  appointed 
by  the  court,  with  the  consent  of  both  parities  thereto.  In  such 
cases  the  accountant  works  in  cooperation  with  experts  in  the 
particular  line  under  consideration,  such  as  owners,  managers, 
engineers,  etc. 


PART  XV. 

DEPRECIATION. 


No  positive  fixed  percentages  can  be  made  that  will  govern 
the  depreciation  of  all  water  works,  gas  works,  electric  light  works, 
steam  heating  works,  telephone  companies,  and  electric  railways. 

The  kind  and  nature  of  the  original  construction  is  the  most 
important  factor,  but  there  are  other  causes  and  conditions  gov- 
erning and  surrounding  each  plant  of  the  above  classes  that  should 
be  subject  to  special  consideration  and  examination  by  experts 
in  the  particular  class,  especially  so  when  the  question  of  valua- 
tion is  the  one  at  issue,  and  even  then  there  is  a  wide  divergence 
of  opinion. 

Depreciation  arises  from  a  variety  of  causes  and  conditions, 
viz.,  that  due  to  wear  and  tear;  to  oversight  or  errors  in  original 
construction;  to  outgrowth  caused  by  increased  population  or 
unforeseen  use;  later  improvements  or  inventions  in  machinery, 
appliances,  etc.,  by  which  the  business  can  be  operated  more 
economically;  scientific  knowledge;  lack  of  care,  maintenance, 
and  use;  deterioration,  such  as  electrolysis  or  chemical  action  on 
pipes,  etc.,  corrosion,  accretions  in  the  pipe  system;  depopulation; 
by  the  falling  off  or  stagnation  in  the  business  of  special  industries 
on  which  the  city  or  town  may  be  dependent;  by  the  transfer  of 
important  business  interests  to  another  community;  inadequacy 
of  supply;  pollution,  in  case  of  water  works;  to  the  elements,  etc. 

Depreciation,  when  considered  simply  from  the  standpoints  of 
"  wear  and  tear "  and  "  later  inventions  or  improvements  in 
machinery,"  etc.,  with  the  assumption  that  the  properties  have 
been  well  constructed  and  properly  maintained,  may  be  divided 
into  three  classes,  viz. :  Those  parts  of  the  properties  which  have 
the  longest  or  maximum  life;  those  which  have  an  average  or 
mean  life;  and  those  which  have  the  shortest,  or  minimum  life. 

MAXIMUM  LIFE. 

To  include  structures  of  masonry,  stone,  or  brick,  such  as  dams, 
canals,  tail-races,  reservoirs;  filters,  foundations  for  machinery, 
conduits,  manholes,  buildings,  etc.;  embankments  of  earth  well 


182  Corporation  Accounting  and  Management. 

sodded;  cast  iron  pipe  and  special  castings  when  properly  coated 
and  not  subjected  to  electrolysis  or  chemical  action;  iron  struc- 
tures, such  as  standpipes,  gas  holders,  bridges,  trestles,  etc. 


MEAN    LIFE. 

To  include  machinery,  such  as  pumps,  engines,  fly-wheels, 
wooden  buildings,  valves,  hydrants,  mechanical  filters,  gas  lamps, 
purifiers,  roadbeds,  paving,  cables,  cars,  etc. 


MINIMUM    LIFE. 

To  include  boilers,  meters,  heaters,  retorts,  gas  stoves,  electrical 
machinery  of  all  kinds,  poles,  wires,  carbons,  lamps,  globes,  tele- 
phone instruments,  switchboards,  rails,  ties,  motors,  controllers, 
arc  lamps,  incandescent  lamps,  etc. 

NOTE.  —  Some  of  the  latter  class  have  a  very  rapid  depreciation. 

On  plants  of  first-class  construction  the  following  percentages 
appear  to  be  a  fair  allowance  for  depreciation  as  a  whole,  deduced 
from  the  authorities  consulted  and  what  data  the  writer  had 
available : 

Waterworks,  H  to    3% 

Gas  works,  3     „    5% 

Electric  light  works,  5     „  10% 

Steam  heating  works,  7     „  10% 

Telephone  companies,  8     ,,  12% 

Electric  railways,  5    „     8% 

NOTE.  —  The  gas  and  electric  light  commissioners  of  Massa- 
chusetts now  practically  compel  gas  and  electric  light  works  under 
municipal  ownership  to  include  in  the  tax  levy  five  per  cent  of  the 
cost  of  the  plant  as  a  depreciation  fund,  under  authority  of  Chapter 
410  of  the  Acts  of  1905,  of  which  the  following  is  an  extract: 

SECTION  4.  Said  chapter  is  hereby  further  amended  by  striking  out 
section  twenty-one  and  inserting  in  place  thereof  the  following:  Section 
21.  Prior  to  the  beginning  of  each  fiscal  year  the  manager  of  the  plant 
shall  furnish  to  the  mayor,  selectmen,  or  municipal  light  board,  if  any,  an 


Depreciation.  183 

estimate  of  the  income  from  sales  of  gas  and  electricity  to  private  consumers 
during  the  ensuing  fiscal  year  and  of  the  expense  of  the  plant  during  said 
year,  meaning  the  gross  expenses  of  operation,  maintenance,  and  repair, 
the  interest  on  the  bonds,  notes,  or  scrip  issued  to  pay  for  the  plant,  an 
amount  of  depreciation  equal  to  five  per  cent  of  the  cost  of  the  plant,  or  such 
smaller  or  larger  amount  as  the  board  of  gas  and  electric  light  commissioners 
may  approve,  the  requirements  of  the  sinking  fund  or  debt  incurred  for  the 
plant,  and  the  loss,  if  any,  in  the  operation  of  the  plant  during  the  preceding 
year.  The  excess  of  the  expense  thus  defined  and  estimated  over  the  esti- 
mated income  from  sales  to  private  consumers  shall  be  included  by  the  city 
or  town  in  its  annual  appropriations  for  maintenance  and  in  the  tax  levy. 
By  cost  of  the  plant  is  intended  the  total  amount  expended  on  the  plant  to 
the  beginning  of  the  fiscal  year,  for  any  purpose  for  which  bonds,  notes, 
or  scrip  may  be  issued  under  sections  seven  and  eight  of  this  chapter.  By 
loss  in  operation  is  intended  the  difference  between  the  actual  income  from 
private  consumers  plus  the  appropriations  for  maintenance  for  the  pre- 
ceding fiscal  year  and  the  actual  expense  of  the  plant,  reckoned  as  above, 
for  that  year  in  case  such  expense  exceeded  the  amount  of  such  income 
and  appropriation.  The  income  from  sales  and  the  money  appropriated 
as  aforesaid  shall  be  used  to  pay  the  annual  expense  of  the  plant  defined 
as  above,  for  the  fiscal  year,  except  that  no  part  of  the  sum  therein  included 
for  depreciation  shall  be  used  for  other  purposes  than  renewals,  in  excess  of 
ordinary  repairs,  extensions,  reconstruction,  enlargements,  and  additions. 
The  surplus,  if  any,  of  said  annual  allowances  for  depreciation  after  making 
the  above  payments  shall  be  kept  as  a  separate  fund  and  used  for  renewals, 
other  than  ordinary  repairs,  extensions,  reconstruction,  enlargements,  and 
additions  in  succeeding  years;  and  no  debt  shall  be  incurred  under  sections 
seven  and  eight  of  this  chapter  for  any  extension,  reconstruction,  or  en- 
largements of  the  plant  in  excess  of  the  amount  needed  for  the  purpose 
in  addition  to  the  amount  then  on  hand  in  said  depreciation  fund.  Said 
depreciation  fund  shall  be  kept  and  managed  by  the  city  or  toum  treasurer  as 
a  separate  fund,  subject  to  appropriation  by  the  city  council  or  selectmen  or 
municipal  light  board,  if  any,  for  the  foregoing  purpose.  All  appropriations 
for  the  plant  shall  be  either  for  the  annual  expense  defined  as  above,  or  for 
extensions,  reconstruction,  enlargements,  or  additions;  and  no  appropria- 
tion shall  be  used  for  any  purpose  other  than  that  stated  in  the  vote  making 
the  same.  Xo  bonds,  notes,  or  scrip  shall  be  issued  by  a  city  or  town  for 
the  annual  expenses  as  defined  in  this  section. 

NOTE.  —  Towns  that  are  maintaining  their  plants  up  to  proper 
standards  and  paying  for  same  out  of  earnings  object  strenuously 
against  including  five  per  cent  of  the  cost  of  the  plant  in  the  tax 
levy  to  be  set*  aside  as  a  renewal  or  depreciation  fund. 


PART    XVI. 

FUNDS  — DIVIDENDS. 


FUNDS. 

Surplus  Fund  represents  the  excess  of  earnings  or  profit  and 
loss  account  which  has  not  been  distributed  amongst  the  stock- 
holders. 

It  may  be  on  hand  in  the  shape  of  cash  or  invested  in  the  plant, 
or  part  cash  on  hand  and  balance  invested  in  the  plant. 

Sinking  Fund  is  a  fund  set  aside  periodically  (generally  in  escrow) 
to  retire  outstanding  securities,  especially  mortgage  bonds. 

Reserve  Fund  is  a  fund  set  aside  for  some  particular  purpose,  and 
is  generally  represented  by  cash  on  deposit. 

Depreciation  Fund  is  a  fund  set  aside  periodically,  taken  from 
either  profit  and  loss  or  surplus,  to  cover  the  whole  or  certain 
portions  of  the  depreciation  of  a  plant. 


DIVIDENDS. 

Cumulative  Dividends  represent  dividends  on  stock  which  accum- 
ulate as  a  dividend  charge  against  the  stock  until  they  are  paid. 

Non-Cumulative  Dividends  represent  dividends  on  stock  which 
have  been  passed  or  defaulted,  arid  do  not  remain  as  a  charge 
against  the  stock. 

Stock  Dividends  represent  dividends  paid  out  of  the  capital 
stock  of  a  company. 


PART  XVII. 

ANNUITY,  COMPOUND  INTEREST,  AND  SINKING 
FUND  TABLES. 


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co'  i>  x*  os'  T-H      c^'  co'  •<**  o  t>  os'  c;  — •'  co'  -t  co'  t>^  os'  r-!  <N 

„         ^H^^^^  T-fM-M^M  <N(M<MCOCO 


186 


Corporation  Accounting  and  Management. 


T-H  CM  CO  -HH  tO        CO  !>•  00  OS 
CO  CO  CO  CO  CO        CO  CO  CO  CO 


O         T-H  CM  CO  rt<  to        CO  t>- 


00  OS  O 

Tf   Tfl   tO 


b-  U5  CO  O  00 


CO  CO  rt<  OS  O 
OS  CO  CO  "^  »™H 

or,  ^  oo  co  <N 

OOCOi-H   Tf  r-l 


T-H  i-H         CM  CO  rf 


CO  ^ 

to  CO 


COCDCM  CO^OOtOGO 

tO  O  t^  CM  CM  T-H  IN»  OS 

tO^O  OSCDtOCOtO 

1^-S-tO  O  tO  OS  CO  t>- 

OS  T^H  CM  Tf  iO  t^  00  C 

T-H  CM  CM  CM  CM  CM  CM  CO 


T-HiOrfiOtO  CO  OS  CO  to  rfi  tOO^OSCO  OO^rH 

oscoi-Htoos  t^-  TF  r^.  i—  to  t^t^co»oos  ocococsco  -^  os  -<t  oo  o 

OOCOT-HCOi-'  t^  CM  t^  iO  CO  CO  00  CO  O  T-H  OI>t^i-HTt<  CO  CD  CO  T-H  CO 

OS  CM  I>  TF  TtJ  CO  CM  O  CM  t>-  CO  00  tq  CO  I-H  I-H  iO  to  I-H  CM  OS  CO  •<*  CM  b~ 

'  co'  T-!  co'  i-I  t>  co  os'  to'  CM  os  t^  to  -*  co  CM'  CM'  co'  -*  to  oc  i-I  to  os 

coi>t^  ooooososo  i-Hr-HCMco'*  iocor^.oC'O5  Oi-ico^to 


a 


CM"*        cOt^toocO        tOr^T-HOOOS        -^II-H 

i>  os  co  co      T-H  to  o  oo  b-      r^  co  o  T-H  i— i 

~iOOSOS        i-HCOCOOtO 


00  OS 
CM  O 
CO  t> 


:S6    %%Z 


O  to        OS  to  CO  00  tO 


to  to  CO  CO  CO 


•*  OS  Tfi 
OC'  00  OS 


COCSCD         ^T-HOOOt^ 
T-HT-HCM         CO^flOtOCD' 


IOCO  CO  OCM 
CO  CO  C^  T—  i  •^ 
T—  I  CO  CO  Is"*  C^ 

^H  OS  CM  O  tO 


00  CO  OS  CO  T-H  OS  to  t^  t^  Tf        iO  t^  O 

CMCMCMCDO  COCM-^COt^        00"*OS 

""t1  i-tOO^OCC        rococo 

CO  "*  CO  CD  CO 

T-I  O  T-H   Tf   O 


g,0 
^sis 


cM  t^-  T—  i 
OS  CM  OS 


CM  OCD  ^  OS 
CM  00  OS  CO  to 
CO  tO  00  to  »O 

CM  O  00  t^  CD 

to  CO  CO  t^  00 


GO  CO 
O  OS 


•HH   O  I>  CO   T-H  T-H   O   O  CM  b- 

CO  T-H  IO  O  CM         O  00  CO  CO  CM 


CM  OOtOtOOs  Ot^OCMCM  ^rHT-HCMt-  "HHCOCOCDI^ 

CO  1>  CM  GO  CD  tq  t^.  OS  Tf  O  00  00  O  "*  O  00  OS  CM  OC_  CO  l> 

CO  00  i— i  to  00  T-H  to  GO  CM'  CO  O  -^-'  Os'  -*•'  OC  CO  Os'  ••*'  O  to  T-H  CO  ''t  T-H  00* 

to  CDCDCD^I^-  OCGOGOOSOS  OCi—tcMCM  COCO^tOtO 


^  O  CD  CO  T— n  CO  CM  to  O  00 

COcMCOCMO  Ot^-CpCOi— i 

GO  O  O  CM  OS  "HH  ^  QT^  CO  t^* 

tO  OS  T-H  CM  CM  CO  ^  to  1^  O 

t^-  CM  OS  CO  Tf  CO  CO  TT  CO  O 


CO  ^  00  OS 
H»5J  •*  t* 

t^.  oo  ^  os 

tO  CM  CM  Tf 

Tt<  O  t>  to 


CD  00  t>  T-H  CO 

O  -*  CO  00  00 

co  oo  CM  r-  "* 


CM  to  t^»  O  CO        CO  OS  CM  to  i 
Tfi  Tt<  -HH  to  to        to  to  CO  CO  ' 


C^ppscObr       i— i  tit>  O  "*  OS       "HHOs 
OS  OS  O  <O  O        T-H  T-H 


§00  oo  co ' 
CO  00  tO  ' 
CO  T-H  1^ 

b-  OS  CM  tq 

os  T-I  Tj5  co'  os' 


i—  i  OS  (N  (N 


tO  to  to  to  CO 


"8 


CO  00 

CO  CO 


oo  co  t^  oo  oo 

CO  i—  I  O  C^  '  T1 

(M  00  T-H 


0"*CM  .. 
iO  to  T-H  CM  C 
i— i  CO  CO  OS  CO 

t-i  os  T-I  co  CD' 

rf  Tf  tO  tO  tO 


CO  T-H  CM  OS  CM 


r~  CM  i>  TT  p 

00  T-H  CO  CO  OS 
to  CO  CO  CO  O 


t^»  T}H  cO  Os  CM 

OS  O  CM  CO  T« 

CO  CD  to  T-H  to 
00  CO  tq  to  tq 

T-H     *+    1>     O     CO 

t^- 1^- 1>-  oo  oo 


OS  O  O  OS  T-H 
OS  t^  CM -T  CO 

1>  OS   i— I   Tf  T-H 

CD  to  CO  00  CM 
CD  00  T-H  T^_  OS 

CD'  os  co'  co  os' 
oo  oo  os  os  os 


rj<  CO  CO  T-H  t^ 
CO  CM  <N  ^  ^ 

"^  i-H  C^  OO  OS 
Tt<  tO'  OS  CO  !^ 

CO  O  b-  to  CO 


TJH         CO  OS  CM  C  O 
"<f         "t1  -*  o  CM  O 

OS        O  T-H  CM  rt^  CD 


t^  CM  CM  00  ^ 
CM  tO  I>  l^  CD 

CM  OS  CM  CM 

to 

CO 


CCtOOOSCO        T-HtO^ 
00  T-H  to  00  CO        00  CO  OS 


**?•  CO  !>•  OS  1-1 
CO  CO  CO 


%^    ^^^^g    §g! 


CO    T-H     OS     T-H     T-H 

CM  CD  CD  to  T-H 
"      CO  O  OS  T-H 

I>  t> 

00  CO  OS  tq  CM 

to  06  o  co  CD' 

t^  I>  GO  00  00 


CM  CO  TfH  iO         CD  t^  GO  OS 


Annuity,  Compound  Interest,  and  Sinking  Fund  Tables.     187 


i-HCMCO^iC        O  t>.  X  Ci  O        I-H  CM  CO  -?  1C        Ot^XCiO        r-KMCO^iC 

CM  CM  CM  CM  CM 


t^rt<  CM  i-  O 
OI-H  CM  CO  TT 


CM  iC  CM        Ci  CM  X  1C  O        CM  X  Ci  iC 

X  X  t-        ^CMOiXOi        CM  X  Ci  O 


<M  (N  W  (M(N 


Ci  ^  CO  O 

CM'  co  co"  co  co 


i  CM  Oi  1C  i— i        i—  O  O  O  ^  CM  I-H  iC  Ci  X 

i  ••fi  t>.  O  O        Ci  -*  iC  CM  t>«  Oi  Ci  Is"-  rfi  i— < 

10  u**  iC  O  Is**  C*  CM  O  ^H  " 

TfiCOt^X  Ci  T- CM  Tf 


_  Tf  1C 

i-J  CM*  CM  CM  CM        CM*  CM  CO*  CO'  CO 


Ci  t>.  o  x  co      CMOOCOI> 

COi-MOOCM        iCOiiCCOCM 
1>  Ci  i-t  CO  1C        l>  Oi  CM  1C  X 


COCO  Tt<  Tjl  Tt< 


* 


O  O  iC  CM 

CM  5  o  co 

1-1  .-i  CM  CO 


iC  O  X  1C  Ci        CO  CM  Ci 
XCOCOCiO         XCMCM 


O  1C  X  Oi  O". 
Ci  CO  Ci  X  1-1 

co  o  x  q  CM 
I-H"  CM"  CM"  CM"  CM"   CM  CM"  CM"  co  eo'   co  co  co'  ^"  "t 


COCMXC        Xt^I>^T-H        r-CMXi-HiC 

ic  ro  f  oo  t>      xt^fCiX      £J^iS0<N 

X  Ci  O  I-H  CM_ 

i-1 1-'  CM  CM'  CM" 


iCi-it^-COO    t^iCCO' 

O  i-t  I-H  CM  CO    CO  Tf  1C  O  t>. 


COXiCOX   CM  1C  CM  O  Tf 
iC  •*  1-1  1C  t>-   X  t^-  O  ^f  CO 


CO  Tf  O  t»  Oi   O 

CM  CM  CM"  CM  CM    CO*  CO"  CO  CO  CO 


iCO»CCO        i-H^-iCCOCi        CO  Ci  t^  C:  Ci        CiOOOCO 
CMt^iCO        Ot^t^i— iX        O«CiCCiX        CMCM'-Ct-CC 


CM    CM  CM  CM  CM  CM    CM  CM  CO  CO  CO 


OOCMiCCM  COCi^-i— 'O  CiCiCMCiCO  •^t'^iCCit^ 
iCCMi-iCMO  CMOCMOCO  CM  1C  CM  -— i  1C  CMCOXt^r-i 
^  Ci  *3"  Oi  ^  O  O  CM  X  1C  CM  Ci  Is*  iC  CO  CM  I™H  O  O  I~H 


O  O  •-!  T-I  C<l 


CM  CM  CM  CM  CM 


CM  t^  CM  O  Tf 

O  CO  CM  O  1C 
CM  CO  iC  t^  O 

1C  O  l>-  X  O 

CM"  CM  CM"  CM"  co" 


co  Oi  Oi  t^»      cc  ct  to  re  c^      ^c  o  ^^  t^*  Oi      o  o^  cc  oc  ^^ 


CM  CM  CM 


X  Ci  t^"  CO  X 
X  Ci  "^t4  CO  iC 
Is"  O  O  O  O 
CM  CO  Tf  1C  O 

CM'  CM  CM  CM'  CM 


X  t^t»        Ci 

•  O  •*   X  CM   l>  r-H 

,_  _  _         CM  CM  CO 


^-ot^co      or^icic 

^rfXiC        ^rft^CM 
I-~        CO  Ci  1C  CM 


CM  CM  CM  CM  CM 


I-H  Ci  X  X  Ci        CM  X  1C  O  O        t>.  X  •*?  1C 
TfOiO-^CO        -riCXCMX         "fCMCMCO 

SSBSS    28SS55    ^^^-^    Qiccic 


5  _      eoi-t 


•*  "*  1C 


CO  00  00 
CO  <N  CO 
^H  l>»  CO  Oi 

Ci  Oi  O  O 


8i-H  CO  O  O        iC  ^- Ci  t^  O 
OOC^-         i— i  CM  CM  CO 
^CMCOTTiC         O 


r^X^iCO        OCO^H-HCM        T^t^CMi 

gg  i^s§2  ^§§§2  S?lll  li§: 


OI>OOCiO        ^f^^^tS        2^22cM        CMCMCMCMCM 


188 


Corporation  Accounting  and  Management. 


cob-  oo  os  o 

CM  CM  CM  CM  CO 


ft  CM  CO  ^  1C 

CO  CO  COCO  CO 


CO  t>.  00  CS  O 
CO  CO  CO  CO  ^T< 


T-I  CM  CO  "f  1C 


«o  r^  oo  os  c 


rt<  CS  X  CO  CO 

(>.  CO  X  T  CM  «J  «J  "J 

Q  ,_,  TTI  ,-H  T-H  T  T-H  CM 

X  CM  CO  T-H  CO  i-Ht^.CO 


1C  1C  GO1 
CO 

00  GO  OS  OS  O 


OS  CO  CO  X  1C 
CO  CO  OS  T  ** 
CM  CM  l>-  CS  l> 

TT  CM  q  as  os" 

1-1'  CM  CO  CO  rt" 


CO  l>  OS  OS  O 
CM  1C  GO  OS  t> 

-  sssg ; 

CM  CM  CM  CM  CM 


T-H    »C    T-H    O    ' 
Tf    I>COT-H    T-H 

l-H   THH   00  CM  CO 

1C  iC  1C  CO  CO 


CO  CM  X  CM  CO 
l^.'  t^  1>  GO  Os" 


T-H  CO  O  OS  T— i 
CO  CM  X  CM  T-H 

CM  q  os  os  q 

CO  -tf'  Tf'  1C  t^ 


00  Tf  >C  CM  t^ 

CO  Tfl  00  Tf  CO 

T"*  OS  Tt*  OC'  O 
T-H  CM  »C  GO  CO 


* 


1! 

ii 


Tfi  CM  • 

ic  oo  T-H  Tt  i> 

TJH   TjJ   1C   1C   1C 


T-H  TJH  CO  C  T-H 

§  co  o  T-H  co 
1C  Tfi  >C  00 
•*  00  (N  CO 


CO  T-H  CO  1C  t^ 


>C  OS  OS  »C  CM 

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OS  CO  OS  l-^  CM 

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XXCSOSO        O  T-H  CM  CM  CO        TtiiCcOt>-X 


S 


(M  Tf  tv  CM 

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OS  rf  OS  1C  T-H 

x  cs  os  6  T-4 


ic  T-H  co  x  o 

X  Tt^  1C  CO  CM 
CO  X  CO  X  Tf 

T-H'  CM  CO  CO  TJH 


« I 

§15 

H      r, 


g  • 

1 1 
if 


x  rf  co  co  co 

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t>.  CO  CO  >C  CO 
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ic  os  CM  cq  q 
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ic  Tf  t^»  r^*  Tt* 

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CM  CM*  CM  CO*  CO 


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CO  00  00  -^t1  CO 
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CM  CN«  CM  CM  CM 


Tf 

CM  CM  CM  CM  CM 


C^4  (N  (N  (N  CO 


T-H  (N  CO  Tt^  1C 
CO  CO  CO  CO  CO 


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O 
1C 


Annuity,  Compound  Interest,  and  Sinking  Fund  Tables.      189 


s  =  § 
.-« 


b-  X  Ci  O  ^H   d  CO  -P  to  CD 


2 


li 


I 


SCOOOCiCO        COCOdt^Ci        XCOXCO»O        Tf  CO  d  X  CO        tOb-COO"^ 
•t  I-H  CO  CO  CO        i— i  O  O  X  t>        d  Ci  to  Ci  Ci        TfHCOCOi-Hd.COCi'<fl>-X»< 


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X  i—  d  !>•  Tf        I-H  O  X  t>- CO 

Tf   CO  d  l-H   ^H  ,-H   T-l 


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I-H  r-n        Ci  X  X  CO  to        OcOdCOtO        O  Ci  i-i  CO  tC        X  Ci  CO 'T  O 


iCOtCOCitC        O  d  X  l>»  X        I-H  TJI  Oi  ^  O 
Xr-COt^'*        d  O  X  b-  CO        CO  to  TJ<  Tt  TT 

I  "<t  CO  d  l-H   l-H  l-H  1— I 


CO  Ci  I"-  to  •* 


d  d  Ci  C:  Ci        CO  »O  d  ^F  t>. 

x  i>-  co  »o  co      x  Tt<  o  co  d 


§t^  b-  d  O  b-  d  -<t  O  Ci  O  d  CO  ^«  CO  d  X  tO  d  O  G  to  I-H  X  CO  •* 

X  I-H  CO  X  rf  (M  O  Ci  !>•  !>•  CO  1C  »C  Tf  ^  CO  CO  CO  CO  d  I-H  I-H 

SOl^-^CiX  t^-Cb-XtO  b-t>.C<|i-Hi-H  C^-^Ot^-*  Cit^-^CO 

O  t>.  t>-  !>•  X  CO  CO  to  CO  (N  CO  N  X  I-H  O  Tti  C<l  rji  00  TT  CO  <N  CO  (N  CO 

c  ci  x"  co  ci  oc  -^'  co'  ci  1-1'  <N'  -t  x'  ci  x*  -*'  o  i>-  •*'  I-H  ci  cc'  ci  ci  t>^  to" 

O  X  I-H  CO  X  ^t*  CI  O  Ci  X  t^  CO  to  to  ^  ^  ^  CO  CO  CO  CI  ^H  ^H 

^^  CO  CO  O  CO  Ci  I-H  CO  Ci  Ci  tC  to  Tt*  l>*  Tt"  CJ  O  Ci  ^  X  ^H  CO  X  C>l  CO  tO 

OdCOtOcOI>-  cOtO^di-H  tOi—tcOCiX  ClCii-HtOO  XtOtCCltO 

§'  o  o  to  Tj-'  o  co'  x  -^  co*  rf  co'  c*  •*'  ci  to  ci  x  co'  co  •**  t>"  co*  c  x  cc* 

CiCJCOXtC  dOCiXl>  COcOtO-^^r1  TfCOCOCOC^  I-H  i— !  I-H 

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_  Tf  ci  <N  -*  cq  to  TJI  Tt  ci  q  Tf_  p  to  x  co  p  x  Ci  co  cq  co  p  x  ^  o 

§'  „'  ^H"  i>;  o  ci  X*  O  CO*  to*  CO*  X*  ci  CO*  *-*  t>*  ^'  O  »>•"  to*  to  Ci*  to*  r-i  Ci"  !>* 

Ci  O  CO  X  1C  CM  i— i  Ci  X  Is-  O  CO  to  tC -^  •*  Tfi  CO  CO  C?  I-H  I-H  I-H 

o  Ci  co  ci  to  I-H  I-H  co  ^  ^  !>•  co  co  co  i>»  i^  to  I-H  T— A  d  co  d  ^  co  x  t^» 

§'  d"  CO*  ci  X  Tt*  C>  d*  X*  t>*  X*  C*  ^t"  X*  CO*  oi  1C*  d*  Ci*  )>*  )>*  i-J  CO*  CO*  O  X* 

CidCOX«C  COi-tCiXl>  l>.CO>CiO^  TfTtCOCOd  di— IT-II-H 

O  X  •*  "^  •*  CO  Ci  l>- CO  1C  I-H  Ci  to  Tf  b.  O  CO  l>  CO  "*  !>.  X  O  "f  !>•  CO 

§'  CO*  to"  O  O  CO*  d*  •***  O*  Ci  O  d*  CO*  C  to*  I-H  !>-"  rti  i-I  oi  Ci*  d"  X*  Tt*  d"  O 

Cid^tCitC  COi-tOXX  l>cOcCiCtO  ^Tf^COd  di-Hi—i^-i-H 

^•^  CO  d  ^   i-H  l-H  r-t  l-H 

§tC'dCOCCCO  di-ndCOX  COdCCOtO  J>-OXtCd  tOCtOi-nCI 

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PART  XVIII. 

MISCELLANEOUS  ACCOUNT    FORMS. 


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Corporation  Accounting  and  Management. 


(  Form  V) 

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Payroll  for  Week  ending 
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NAME 

AMOUNT 

RECEIVED            (SISNATUBE  OF 
PAYMENT                  PAYEE) 

(Form  W) 
(Payroll  Envelope) 

Payroll  ending  I90_ 

Less  Cash 
Advanced                                  $ 

Ralanr.e  Due                          $ 

Verified  and  Approved 

190 

Head  of  Department 


Miscellaneous  Account  Forms. 


193 


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Corporation  Accounting  and  Management. 


(Form  Y) 


Treasurers  Annual  Report 
for  the  Fiscal  Year  ending 


190 


Profit  and  Loss  Account 


Expense 

$ 

Water 
Meters 

$ 

Repairs,  Renewals,  and  Maintenance 
Salaries  and  Wages 
Fuel 

Net  Gain  (Balance) 

Fixtures 
Hydrants  ( 
( 
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Miscellane 

Meter  Renta 
Service  Pipe 
Taps 

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Priv 
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Total 

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Fixed  Charges:- 
Taxes 

$ 

$ 
$ 

Total 

$ 

$ 

Interest  on  Debt             $ 
Total 

Surplus  for  Year 

$ 

Assets:- 

Construction 
Cash  in  Banks 
"      "  Vault 
Notes  Receivable 
Accounts       " 
Inventory 
Fuel 


Supplies 


Total 


Liabilities:- 
Capital  Stock  S 

Bonded  Debt 
Notes  Payable 
Accounts  Payable 
Coupons  Outstanding 
Depreciation  Fimd 
Surplus 

Total  S 


Treasurer 


PART  XIX. 

MISCELLANEOUS  INSTRUMENT  FORMS. 


NOTES. 

(Ordinary  Form.) 
(Form  108) 

$ BOSTON, 190  . 

after   date    promise   to   pay 

to  the  order  of 

Dollars, 

Payable  at    

Value  received. 


Xo.  .  Due 


(Form  109) 

(Collateral  Security  Form,  No.  1.) 
DOLLS.  CTS.  BOSTON, 190  . 

.after  date,  for  value  received, 

promise  to  pay  to 

or  order,  at place  of  business, 


with  interest,  at  the  rate  of per  centum  per 

Having  deposited  with  this  obligation  as 

COLLATERAL  SECURITY, 


Dollars, , 

100 


196  Corporation  Accounting  and  Management. 

with  the  right  'to  call  for  additional  security  should  the  same  decline,  and 
with  authority  to  sell  the  same  or  any  collaterals  substituted  for  or  added 
to  the  above,  without  notice,  either  at  public  or  private  sale  or  otherwise, 
at  the  option  of  the  holder  or  holders  hereof  on  the  non-performance  of 

this  promise,  he  or  they  giving credit  for  any  balance  of  the  net 

proceeds  of  such  sale  remaining  after  paying  all  sums  due  from    

to  the  said  holder  or  holders,  or  to  his  or  their  order.  And  it  is  further 
agreed  that  the  holder  or  holders  hereof  may  purchase  at  any  public  sale. 
Due  . 


(Form  110) 

(Collateral  Security  Form  No.  2.) 


BOSTON,  MASS.,  190  . 

after  date,   for    value    received,    ....    promise 


to  pay  to 

THE  TRUST  COMPANY,  OF  BOSTON, 

or  order,  at  said  Trust  Company, Dollars, 

having  deposited  with  said  Trust  Company,  as  collateral  security 

for  payment  of  this  or  any  other  direct  or  indirect  liability  or  liabilities  of 

to  said  Trust  Company,  due  or  to  become  due,  or  that  may  be 

hereafter  contracted,  the  following  property,  viz. : 


the  market  value  of  which  is  now  $ ,  with  the  right  to  call  for 

additional  security  should  the  value,  in  the  judgment  of  the  president, 
vice-president,  or  treasurer  of  said  Trust  Company,  decline ;  and  on  the  failure 
to  supply  the  amount  demanded,  this  obligation  shall  be  deemed  to  be  due 
and  payable  on  demand.  With  full  power  and  authority  on  the  non- 
performance  of  this  promise  or  the  non-payment  of  any  of  the  liabilities 
above  mentioned,  or  at  any  time  or  times  thereafter,  to  sell,  assign,  and 
deliver  the  whole  of  said  property  or  any  part  thereof,  or  any  substitutes 
therefor,  or  any  additions  thereto,  at  any  brokers'  board,  or  at  public  or 
private  sale,  at  the  option  of  said  Trust  Company,  or  its  president,  vice- 
president,  or  treasurer,  or  assigns,  without  advertisement  or  any  notice 
to  the  undersigned  or  any  other  person ;  and  the  said  Trust  Company,  its 
officers  or  assigns,  may  bid  and  become  purchasers  at  any  such  sale,  if  public, 
or  at  brokers'  board. 


Miscellaneous  Instrument  Forms.  197 

After  deducting  all  legal  or  other  costs  and  expenses  of  collection,  storage, 
custody,  sale,  and  delivery,  the  residue  of  the  proceeds  of  any  such  sale  or 
sales  to  be  applied  to  the  payment  of  any  or  all  of  the  liabilities  aforesaid, 
due  or  to  become  due  said  Trust  Company,  returning  the  overplus  to  the 
undersigned. 


(Form  111) 

(Ordinary  Form  of  Proxy.) 

KNOW  ALL  MEN  BY  THESE  PRESENTS,  That the  under- 
signed stockholder  in  the    ; 

do    hereby    appoint     true    and    lawful 

attorney,  with  power  of  substitution,  for and  in 

name  to  vote  at  the  meeting  of  the  stockholders  in  said  company,  to  be 

held   at    or   at 

any  adjournment  thereof,  with  all  the  powers should  possess 

if  personally  present,  hereby  revoking  all  previous  proxies. 

". 1 

Witness,  


(Form  112) 

(Form  of  Stock  Dividend  Certificates  and  Rights,  with  endorsement  thereon.) 
COMPANY. 

STOCK    DIVIDEND   CERTIFICATE. 

THIS  CERTIFIES  that 

is    entitled    to    receive    Share    , 

and  is  the  owner  of    Rights, 

equivalent,  each,  to  of  a  share  of  the  capital  stock  of  the 

COMPANY,  in  accordance  with  a  vote  of  the  directors  of  the 

company,  passed  January  20,  1906,  copy  of  which  appears  below. 

Such  fractional  rights  to  be  presented  and  surrendered  to  the  treasurer, 
in  amounts  equivalent  to  one  share  or  some  multiple  thereof,  in  exchange 
for  certificates  of  stock,  on  or  before  noon,  February  25,  1906.  The  number 
of  such  rights  required  to  make  one  share  of  stock  is  22T1J. 

Treasurer's  Office, 
. .  State  St.,  Boston,  Mass. 

February  15,  1906.  Treasurer. 


198  Corporation  Accounting  and  Management. 

"  VOTED:  That  the  65  shares  of  stock  now  in  the  treasury  of  the  Company 
be  issued  as  a  stock  dividend  pro  rata  to  stockholders  of  this  Company  cf 
record  February  15,  1906,  and  that  the  treasurer  of  the  Company  be  author- 
ized to  adjust  all  rights  relating  thereto,  and  that  a  dividend  of  1£  per  cent 
be  declared  and  paid  on  each  share  August  1,  1906." 

(Indorsement.) 

FOR  VALUE  RECEIVED,    

hereby  sell,  assign,  and  transfer  to   

share     ,    and    

rights,  equivalent  each  to  &\  of  a  share  of  the  capital  stock  of  the 

Company,  subject  to  the  vote  and  conditions  referred  to  within. 


Dated 


PART   XX. 

OFFICE  DEVICES. 


In  companies  where  the  amount  of  clerical  labor  involved  is 
considerable,  it  would  be  economical  to  install  some  of  the  principal 
office  devices,  thereby  materially  reducing  the  cost  and  expediting 
the  business. 

Some  of  the  principal  office  devices  are:  Combined  billing  and 
adding  machines,  addressing  machines,  adding  machines,  sealing 
machines,  typewriters,  perforating  receipting  stamps,  check  pro- 
tectors, hand  numbering  machines,  auto  coin  machines,  letter 
copiers,  postal  scales,  tube  systems,  bell  annunciators,  filing  cases, 
metal  plan  cases,  etc. 

There  are  several  good  makes  of  the  above  on  the  market,  all 
having  some  particular  merit. 

The  "  addendagraph,"  an  adding  attachment  to  the  Underwood 
typewriter  machine,  is  one  of  the  latest  devices. 

The  Thexton,  also  Bowes'  sealing  machines  and  the  Boettscher 
and  Knecht  receipting  machine  are  operated  by  electricity. 

For  making  or  checking  computations  approximately,  involving 
multiplication  or  division,  the  slide  rule  could  be  used  to  advantage 
where  there  is  a  large  amount  of  such  work. 


INDEX  OF  ACCOUNT  FORMS. 


PAGE 

Stock  Ledger  (Form  A) 11 

Service  Card  (Form  B) 29 

Plumber's  Card  (Form  C) 30 

Meter  Bill  (Form  D) 31 

Fixture  Rate  Bill  (Form  E) 31 

Service-Pipe  Bill  (Form  F) 32 

Telephone  Bill  (Form  D-l) 131 

Collector's  Report  (Form  G) %. 33 

Treasurer's  Statement  (Form  H) 34 

House-to-House  Inspection  Book  (Form  I) 36 

Meter  Book  (Form  J) 38 

On  and  Off  Book  (Form  K) 40 

Cash  Book,  Debit  Side  (Form  M) 45 

Cash  Book,  Credit  Side  (Form  N) 46 

Cash  Book,  Controlling  Method  (Form  O-2) 57 

Voucher,  Check  and  Distribution  (Form  O-l) 52 

Voucher  Distribution  Book  (Form  O) 50 

Construction  Record,  Pipes  (Form  P) 59 

Construction  Record,  Valves  and  Hydrants  (Form  P-l) 60 

Gate  Book  (Form  P-2) 61 

Customer's  Register  for  five  years,  by  months  (Form  Q) 166 

Customer's  Register  for  Water  Works,  Fixture  Basis  (Form  Q-l) 167 

Customer's  Register  running  one  year  only  (Form  Q-2) 169 

Division  or  Department  Order  (Form  R) 171 

Division  or  Department  Order  (Form  R-l) 174 

Requisition  Order  (Form  S) 172 

Daily,  Weekly,  or  Monthly  Report  of  Condition  (Form  T) 190 

Perpetual  Inventory  (Form  U) 191 

Payroll  (Form  V) 192 

Payroll  Envelope  (Form  W) 192 

Engineer's  Annual  Statement  (Form  X) 193 

Treasurer's  Annual  Report  (Form  Y) 194 

Annual  Income  Account,  Electric  Railway 157 


INDEX  OF  INSTRUMENT  FORMS. 


PAGE 

Common  Stock  (Form  100) 9 

Preferred  Stock  (Form  101) 10 

Power  of  Attorney  (Form  102) 10 

First  Mortgage  Sinking  Fund  Bond  (Form  103) 13 

Mortgage  and  Bonds  issued  thereunder  (Form  105) 15 

Coupon  (Form  104) 14 

Application  Book  (Form  106) 28 

Form  of  Report  Required  by  Gas  and  Electric  Light  Commissioners  of 

Massachusetts  (Form  107) ' : 76 

Note,  Ordinary  (Form  108) 195 

Note,  Collateral  Security  Xo.  1  (Form  109) 195 

Note,  Collateral  Security  No.  2  (Form  110) 196 

Proxy,  Ordinary  (Form  111) 197 

Stock  Dividend  Certificate  and  Rights,  with  endorsement  thereon  (Form 

112) 197 


ACCOUNT  BOOKS,  FORMS,  ETC. 

FOR 

MUNICIPAL  OR  PUBLIC 
CORPORATIONS 

made  to  order  to  any  desired  pattern 


CORPORATION  PUBLISHING  Co. 

P.  O.  Box  2428 
BOSTON,  MASSACHUSETTS 


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